On June 20, 2018, the DOJ announced that Healogics, Inc., a Florida-based operator of approximately 700 hospital-based wound care centers (Healogics), had agreed to pay up to $22.51 million to settle allegations that it violated the False Claims Act by knowingly causing wound care centers to bill Medicare for unnecessary hyperbaric oxygen (HBO) therapy.

The settlement resolves allegations that from 2010 through 2015, Healogics knowingly submitted or caused the submission of false claims to Medicare for medically unnecessary HBO therapy. The settlement comes as the result of two separate whistleblower lawsuits – one filed by a former Director for Research and Quality for Medical Affairs at Healogics, the other filed by two doctors and a former program director who worked at Healogics-affiliated wound care centers.

Under the settlement, Healogics agreed to pay $17.5 million, plus an additional $5.01 million if certain financial contingencies occur within the next five years, for a total potential payment of up to $22.51 million. The settlement provides for a whistleblower share of up to $4,276,900. In addition, Healogics entered into a five-year Corporate Integrity Agreement with the OIG, which includes a claims review and systems review to be conducted by an Independent Review Organization.

The DOJ announced that the settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Middle District of Florida, and the OIG. The DOJ’s press release specified that the claims settled by the agreement were allegations only, and that there had been no determination of liability.

A copy of the DOJ’s press release is available here.