$11.4M Settlement from California Oxygen Equipment Supplier

April 27, 2017

A company in California’s Bay Area that sells home oxygen equipment has agreed to pay more than $11 million to settle allegations that it profited from filing false reimbursement claims with the government.

The San Francisco Chronicle reported the Justice Department announced the settlement with Pacific Pulmonary Services this week.

About $2 million of the settlement will go to a former Pacific Pulmonary sales representative in San Leandro. Manuel Alcaine sued the company in 2010 under a law that allows private citizens who expose fraud against the government to share in the recovery.

The government alleged the company submitted reimbursement claims to Medicare and other federal programs without a doctor’s approval and participated in a kickback scheme involving sleep testing clinics.

Novato-based Pacific Pulmonary Services hasn’t admitted any wrongdoing by settling.

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