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November 13, 2020

San Fernando Valley Medical Supply Company Pays Nearly $570,000 to Resolve Civil Claims under the FCA

Valley Home Medical Supply, Inc., which provides medical supplies and durable medical equipment paid $565,873 to resolve allegations that it knowingly submitted false claims to federal health care programs for medically unnecessary medical supplies and supplies never delivered to patients. This settlement was part of an agreement that resolved a “whistleblower” lawsuit that alleged the company defrauded the Medicare and TRICARE programs from July 2006 until May 2013. Valley Home Medical Supply’s former president and CEO Kenneth Greenlinger pleaded guilty in May 2017 to two counts of health care fraud and served an eight-month federal prison sentence. In the criminal case, Greenlinger was ordered to pay restitution of $1,072,618. Kari Kitamura, a former employee of Valley Home Medical Supply, filed the civil lawsuit under the qui tam – or whistleblower – provisions of the False Claims Act (United States ex rel. Kitamura v. Valley Home Medical Supply, CV12-11036 DSF(AGRx), in 2012. The United States elected to intervene in the lawsuit in 2017. As a result of the settlement, Ms. Kitamura will receive $124,492, which equals 22 percent of the settlement proceeds. Valley Home Medical Supply will also pay Ms. Kitamura $80,000 for attorney’s fees.