American HomePatient Reaches Settlement With Government On Investigation.Business Editors & Health/Medical Writers BRENTWOOD, Tenn.--(BUSINESS WIRE)--June 20, 2001 American HomePatient, Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). :AHOM) announced today that it has reached a settlement with the federal government to resolve an investigation by the Civil Division of the U.S. Department of Justice ("DOJ"), the Office of the Inspector General Office of the Inspector General (or OIG) is a common sub-agency within cabinet-level agencies of the United States federal government and serves as auditing and investigative arm of the agency's programs focused on identifying waste, fraud and abuse. of the Department of Health and Human Services Noun 1. Department of Health and Human Services - the United States federal department that administers all federal programs dealing with health and welfare; created in 1979 Health and Human Services, HHS ("HHS-OIG"), and the TRICARE Management Activity (CHAMPUS CHAMPUS Civilian Health & Medical Program for Uniformed Services A health care plan for military dependents and retirees operated by the DoD Types of service HMO, PPO, and fee-for-service, through a single health plan known as TriCare ) relating to alleged improprieties by the Company during the period from January 1, 1995 through December 31, 1998. While the Company has denied these allegations and admitted no liability, the terms of the settlement provide that American HomePatient will pay $7.0 million, including an initial $3.0 million payment. The balance, including interest, is payable in installments over the next 57 months. The Settlement has been submitted to Judge Russell of the United States District Court for the Western District of Kentucky The United States District Court for the Western District of Kentucky is the federal district court whose jurisdiction includes the following Kentucky counties: Adair, Allen, Ballard, Barren, Breckinridge, Bullitt, Butler, Caldwell, Calloway, Carlisle, Casey, Christian, Clinton, for his final approval, which is expected to be received. American HomePatient has been dealing with this matter since February 1998. The Company agreed to the settlement in order to avoid delay, uncertainty, inconvenience and expense of protracted pro·tract tr.v. pro·tract·ed, pro·tract·ing, pro·tracts 1. To draw out or lengthen in time; prolong: disputants who needlessly protracted the negotiations. 2. litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. . Certain statements made in the press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements are based on management's current expectations and include known and unknown risks, uncertainties and other factors, many of which the Company is unable to predict or control, that may cause the Company's actual results or performance to materially differ from any future results or performance expressed or implied by such forward-looking statements. These statements involve risks, uncertainties and other factors detailed from time to time in the Company's filings with the Securities and Exchange Commission. Such factors may include the level of effectiveness of and compliance with the Company's corporate compliance program, current or future legal proceedings commenced against the Company, acceleration of all indebtedness under the Company's credit facility, the foreclosure of all of the Company's assets by the lenders under the Company's credit facility, the increased cost of borrowing under the Company's credit agreement, changes to the Company's business strategy and operation, the effect of healthcare legislation and regulation, and the ability to retain or obtain business. The Company cautions investors that any forward-looking statements made by the Company are not necessarily indicative of the future performance. |
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