In a lawsuit unsealed in federal court today, five Southern California ambulance companies agreed to pay more than $11.5 million to resolve Department of Justice kickback allegations. Among the five were two San Diego–based companies, Balboa Ambulance Service, and E.R. Ambulance. The other three companies were based in Orange County.
According to the U.S. attorney's office, the companies had a "swapping" scheme by providing deeply discounted (often below cost) ambulance service to hospitals and nursing facilities in exchange for exclusive rights to the facilities' more lucrative Medicare patient referrals. Such kickback arrangements can lead to inflated Medicare charges.
Anti-kickback laws specifically prohibit arrangements intended to influence health-care referrals.
Two or the Orange County companies, Pacific Ambulance and Bowers Companies, were acquired by Rural/Metro Corp. after the misconduct occurred.
In a lawsuit unsealed in federal court today, five Southern California ambulance companies agreed to pay more than $11.5 million to resolve Department of Justice kickback allegations. Among the five were two San Diego–based companies, Balboa Ambulance Service, and E.R. Ambulance. The other three companies were based in Orange County.
According to the U.S. attorney's office, the companies had a "swapping" scheme by providing deeply discounted (often below cost) ambulance service to hospitals and nursing facilities in exchange for exclusive rights to the facilities' more lucrative Medicare patient referrals. Such kickback arrangements can lead to inflated Medicare charges.
Anti-kickback laws specifically prohibit arrangements intended to influence health-care referrals.
Two or the Orange County companies, Pacific Ambulance and Bowers Companies, were acquired by Rural/Metro Corp. after the misconduct occurred.
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