American Medical Response has paid the United States over $9 million to resolve allegations that the ambulance company provided illegal inducements to hospitals in Texas in exchange for referrals. The inducements took the form of contracts known as “swapping arrangements,” which gave the medical facilities discounts on transports in exchange for the referral of transport of Medicare patients being discharged from the hospitals.
The suit began as a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act. The two whistleblowers, former AMR employees, will receive $1.6 million.
An October 5, 2006 press release from the Dept. of Justice is available at U.S. Newswire.