Used Hospital Beds Billed as New: Hillrom Pays $2.1 Million

Hillrom settled allegations that for eight years its Direct to Consumer division sold used Clinitron, TotalCare and VersaCare beds but billed Medicare, TRICARE, the VA and Medicaid as if they were new — plus miscoded surfaces and travel time billed as repairs.

Durable medical equipment companies Hill-Rom Holdings, Hill-Rom Company, Hill-Rom Services, and Advanced Respiratory Inc. — collectively Hillrom — agreed to pay $2.1 million to resolve allegations they violated the False Claims Act by submitting false claims to Medicare, TRICARE, the Department of Veterans Affairs, and Medicaid.

The settlement resolves allegations that from January 1, 2011 through December 1, 2019, Hillrom's Direct to Consumer division sold used Clinitron, TotalCare, and VersaCare beds but billed federal healthcare programs as if they were new. It also covers allegations that beds and pressure support surfaces were sold under a miscellaneous code that sometimes resulted in a higher price, and that travel time was mischaracterized as repair time to make it reimbursable.

The case began as a qui tam whistleblower suit by Jeri Harris, a former Hillrom employee. The VA Office of Inspector General assisted the investigation. Baxter International purchased Hillrom after the alleged conduct, and the division involved is no longer operational. The settlement does not separate the VA's share of the $2.1 million.

"Hillrom's actions damage our federal health programs and impact the families who need them"
— U.S. Attorney's Office, District of South Carolina

Source: U.S. Attorney's Office, District of South Carolina. Case file in the VA Fraud case files — part of the VA Fraud record. Cases are published as the courts decided them; amounts are stated as the Justice Department states them (billed, stolen, or ordered in restitution, as labeled).