In brief: AHP earnings fall, DME owners found guilty

Sunday, March 16, 2008

BRENTWOOD, Tenn. - American HomePatient (AHP) reported $71.5 million in revenues for the fourth quarter of 2007, a 14% decrease from the $83.1 million in revenues it reported for the same quarter in 2006. Revenues for the year were $293 million in 2007 compared to $321.8 million in 2006, an 8.9% decrease. One of the reasons for the decreases: planned reductions in non-focus product lines like non-respiratory durable medical equipment. AHP reported $300,000 in net loss for the fourth quarter of 2007 compared to $1.4 million in net income for the same quarter of 2006. It reported a net loss of $5.5 million for 2007 compared to a net loss of $2.6 million for the same quarter in 2006.

Jury finds DME owners guilty of fraud
MIAMI - A federal jury on March 7 convicted the owners of two durable medical equipment companies and a home healthcare agency, as well as a physician, of Medicare fraud. After a five-week trial, the jury found Maria Hernandez, Marta Jimenez, Maivi Rodriguez and Dr. Ana Caos guilty on all charged accounts, including conspiring to defraud the U.S. government, submitting false claims to Medicare, soliciting and receiving kickbacks, and conspiring to commit healthcare fraud. Their alleged scheme: falsely diagnosing patients with COPD and prescribing unnecessary aerosol medications, including compounded medications delivered by Miami-area pharmacies. Hernandez faces 35 years in prison; Rodriguez and Jiminez 25 years, and Caos 15 years.