Health Care Firm Settles Fraud Case

WASHINGTON (AP) - Rotech Medical Corp. will pay the government $17 million to settle allegations the company fraudulently overbilled health care programs for respiratory equipment, supplies and services.

Rotech, based in Orlando, Fla., is one of the nation's largest health care equipment suppliers.

The settlement resolves claims that Rotech submitted false bills to several government agencies, including Medicare, Montana Medicaid, the Department of Veterans Affairs and Indian Health Service.

A message left Thursday with the company was not immediately returned. 

The government also has accused Rotech of forging and falsifying billing documents.

In February 2000, Rotech and its parent company, Integrated Health Services Inc., filed for bankruptcy protection. The terms of the settlement are part of the company's financial reorganization.

AP-NY-02-14-02 1815EST