Home Health & Hospice Week

Due diligence could prevent you from having to do the same. If you're thinking about acquiring a durable medical equipment business, you might want to give its billing an extra-careful once-over. The new owners of Doctor's Choice Medical Equipment of Largo Inc. have learned that lesson the hard way. The Largo, FL-based company was sold in 1999 to Beaumont, TX-based Home Care Supply Inc., reports the St. Petersburg Times. And Home Care Supply soon uncovered a hidden cost -- years of allegedly misguided billing practices. The new owners disclosed improper billing findings to the government, according to a release from Florida Attorney General Charlie Crist. An ensuing investigation turned up Medicare and Medicaid claims dating from 1994 to 1998 for nebulizer supplies and wheelchairs that had been double-billed or never supplied at all. On July 22, Crist announced a $1.38 million settlement with Doctor's Choice, of which the Sunshine State would receive more than $777,000. An unidentified company employee who came forward as a whistle-blower and alleged misconduct in addition to what the company reported will receive more than $54,000 as her share of the settlement. The U.S. Attorney's Office recovered an additional $608,000 for the Medicare program. The whistle-blower will receive a share of these funds as well. Danbury, CT-based PraxairInc. in June announced an agreement to buy Home Care Supply, which generated $169 million in revenues in 2003 (see Eli's HCW, Vol. XIII, No. 22).