Sleep Solutions, Inc. Settles Claims of False Billings for In-home Sleep Studies

September 8, 2010

Baltimore, Maryland - Sleep Solutions, Inc., a diagnostic service provider located in Glen Burnie, Maryland that provides in-home, self-administered sleep study kits to evaluate sleep-disordered breathing, has paid the United States $500,000 to settle claims that it violated the False Claims Act by submitting false claims to TRICARE and the Federal Employees Health Benefit Program for in-home sleep studies.

The settlement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Patrick E. McFarland of the Office of Personnel Management - Inspector General; and Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office.

According to the settlement agreement, the government alleged that in order to increase its reimbursement, Sleep Solutions falsely billed in-home, self-administered sleep studies as if the sleep studies were attended by a sleep technologist. Additionally, the government alleged Sleep Solutions billed for these same sleep studies when TRICARE and the Federal Health Employees Benefit Program did not permit reimbursement for in-home sleep studies. Sleep Solutions denied the allegations.

United States Attorney Rod J. Rosenstein said, “Medical service providers must be held accountable when they falsely bill for services that were not provided.”

Enacted during the Civil War, the False Claims Act is the government’s primary civil tool to combat fraud and abuse in federal programs and procurement. The Act allows the government to recover triple the amount of its actual damages, plus a civil penalty of $5,500 to $11,000 for each false claim.

United States Attorney Rod J. Rosenstein commended the investigative work performed by the U.S. Office of Personnel Management and the Defense Criminal Investigative Service. Mr. Rosenstein also thanked Assistant U.S. Attorney Thomas F. Corcoran, who handled the case.

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