TYLER, Texas (KELO.com) -- Paramedics Plus, LLC., the company that has the ambulance contract for the City of Sioux Falls, is one of seven defendants that have agreed to pay $21 million in a federal kickback case.
Yesterday, the U.S. Attorney for the Eastern District of Texas announced the settlement of United States ex rel. Dean v. Paramedics Plus, LLC, et al.. The action was brought under the federal False Claims Act.
The feds said in a news release that the defendants allegedly "knowingly submitted claims to the Medicare and Medicaid programs that violated the Anti‑Kickback Statute."
The U.S. Attorney's Office also noted:
“The United States’ efforts in this case ended abusive practices in the ambulance industry,” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division. “These settlements demonstrate our commitment to ensuring that health care decisions are made based on patient needs, not a health care provider’s financial interests.”
“Paramedics Plus paid millions of dollars in illegal inducements over the course of a number of years,” said U.S. Attorney Joseph D. Brown for the Eastern District of Texas. “Williamson allegedly received gifts and also directed Paramedics Plus to make political contributions to local Oklahoma politicians, which EMSA could not do on its own. Sophisticated health care companies do not simply give away millions of dollars to referral sources without expecting something in exchange. Quid pro quo arrangements for the referral of health care business are illegal.”
Read the full news release here.
KELO.com News is contacting City officials and Paramedics Plus for reaction.