Rural/Metro Corp.

Scottsdale, AZ: (Jun-11-07) The Justice Department filed charges against Rural/Metro Corp., an ambulance operator, alleging that it provided illegal inducements to hospitals in Texas in exchange for referrals, which was a violation of the False Claims Act. The Scottsdale, Arizona-based company provided or offered bribes to Texas hospitals in the form of contracts known as "swapping arrangements." In exchange for the referral of all or some of the ambulance transports of patients being discharged from the hospitals, the medical facilities were given discounts on transports, which were billed to Medicare. The False Claims Act imposes liability for knowingly submitting to the federal government a false or fraudulent claim for payment.

In a settlement reached Rural/Metro Corp. agreed to pay the United States over $2.5 million to resolve allegations. Rural/Metro's settlement is the outcome of the qui tam or whistleblower lawsuits filed in 2000 and 2001 by Daniel Block and Adam Wightman two former of employees of Rural/Metro's competitor - American Medical Response Inc. As a result of the settlement, Block and Wightman will receive about $450,000. [RTT NEWS: AMBULANCE REFERRALS]

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Published on Jun-12-07