FOR IMMEDIATE RELEASE CIV MONDAY, MARCH 27, 1995 (202) 616-2771 TDD (202) 514-1888 FLORIDA HEALTH CARE PROVIDER TO PAY $414,911 TO SETTLE FRAUD ALLEGATIONS The Department of Justice today announced that it has entered into a settlement agreement with a Miami, Florida, health care provider to dispose of allegations that the company falsely billed the federal Medicare program for supplies for nursing home patients. Assistant Attorney General Frank W. Hunger, in charge of the Civil Division, said that under the terms of the settlement, the United States will recover $414,911 from CHR Associates, Inc., doing business as Claridge House, including $173,411 which CHR has paid already. Mr. Hunger noted that this civil recovery shows the government's "continuing efforts to combat health care fraud on behalf of the United States taxpayers." In 1990, CHR entered into a contract with a third party billing agent, Handled With Care (HWC), whereby HWC would review CHR's records and bill the government for medical supplies supposedly used in the treatment of nursing home residents. Under the contract, CHR and HWC would share equally the proceeds of any claims paid through the Medicare Program. Between September and December 1990, HWC submitted claims for Medicare reimbursement on behalf of CHR. The government determined that the vast majority of these charges for supplies were not supported by the patients' medical records, and hence were not reimbursable under the Medicare program. The government alleged that CHR thus improperly augmented its Medicare reimbursement from the government. Under the False Claims Act, the United States is entitled to recover three times its damages and up to $10,000 for each false claim submitted to the government. # # # 95-167