Harborside Healthcare to Pay Nearly $1.4M to Settle Kickback Allegations

Harborside Healthcare and HHC Nutrition Services have agreed to pay the U.S. government $1.4 million to resolve False Claims Act allegations that the company received kickbacks and assistance under the guise of a sham durable medical equipment provider, according to a U.S. Department of Justice news release.

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Harborside allegedly received kickbacks and other assistance from McKesson Corp. and its affiliate MediNet Corp., and in return, Harborside purchased DME from McKesson. Investigations into McKesson and MediNet are ongoing.

As part of the settlement, Harborside also agreed to forego $498,000 in DME claims that had not yet been billed to Medicare.

The suit against Harborside was initiated by a whistleblower who will receive $275,000 from the government’s recovery.

Read the DOJ’s release on the Harborside Healthcare kickback settlement.

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