Healthcare Business News

Sleep diagnostics firm to pay $15 million settlement

By Associated Press
Posted: January 4, 2013 - 7:45 am ET

A Florida company that performs diagnostic tests on patients suffering from sleepdisorders has agreed to pay $15.3 million to settle claims that it improperly billed services to Medicare and other programs.

The U.S. Attorney's office in Louisville, Ky., announced the settlement with American Sleep Medicine of Jacksonville, Fla., on Thursday. A statement says the company falsely billed Medicare Part B, TRICARE and the Railroad Retirement Medicare Programs because diagnostic testing was performed by unqualified technicians.

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The company runs 19 diagnostic centers in the U.S., including Kentucky. A former employee, Daniel Purnell, filed a complaint in 2010 against the company using the Federal False Claims Act. The suit was moved from California to Kentucky in 2011 when Purnell moved here.

The improper billing period occurred between 2004 and 2011.

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