Hill-Rom Pays to End Whistleblower Suit

Bigwigs at Hill-Rom Company Inc.—consumed with maintaining the firm’s well-polished image—have agreed to pay $41.8 million to settle Medicare fraud allegations but are refusing to admit any wrongdoing in the case.

In a tersely-worded and brief statement, the Batesville, Ind.-based medical equipment supplier said it vehemently disagrees with the charges detailed in a 2005 False Claims Act lawsuit. And the settlement, executives added, does not constitute an admission of wrongdoing. “Hill-Rom is dedicated to the highest standards of business conduct and integrity,” the statement read. “We vigorously disagree that there was any wrongdoing in this situation and this settlement does not represent any admission on our part. We remain committed to adherence with all applicable laws and regulations.”

The lawsuit filed by two nurses who worked for Hill-Rom as sales representatives contended the company billed Medicare for equipment for patients who did not need it, including some patients who had died. Hill-Rom allegedly billed the federal government between 1999 and 2007 for bed-support surfaces used in the treatment of pressure wounds without monitoring the status of patients to determine whether the equipment would continue to be medically necessary, according to the complaint filed in U.S. District Court in Knoxville, Tenn.

During a 2003 audit, the company discovered that medical necessity could not be verified for 65 of 99 cases reviewed. Nevertheless, Hill-Rom billed Medicare for equipment provided to 44 of those beneficiaries, according to the settlement agreement released by the U.S. Department of Justice.

In addition to the $41.8 million payment, Hill-Rom agreed to enter a five-year corporate integrity agreement with the Office of Inspector General within the U.S. Health and Human Services Department. The employees who filed the suit—Laurie Salmons and Lisa Brocco—will share $8 million from the settlement amount.