LAKE FOREST, Calif., Aug. 9, 2005 (PRIMEZONE) -- Apria Healthcare Group Inc. (NYSE:AHG) today announced that it has reached a preliminary agreement with representatives of the government and the relators (plaintiffs) for the settlement of two previously disclosed civil qui tam lawsuits involving allegations of incomplete or inaccurate documentation supporting a portion of the Company's Medicare billings during the period from mid-1995 through 1998. Under the settlement, Apria will pay the government $17.6 million without any admission of wrongdoing.
In commenting on the preliminary agreement, Lawrence M. Higby, Apria's Chief Executive Officer, said, "We are pleased that we have been able to reach an acceptable compromise with the government concerning our billing documentation and record keeping during the period following the merger that created Apria ten years ago."
"As we have grown, Apria has further enhanced its industry-leading commitment to compliance with applicable laws and regulations by increasing the resources we commit to our formal compliance programs," Mr. Higby added. "This includes extensive training, internal audits and other steps taken to ensure that our compliance program meets the expectations of our patients, customers, auditors and government officials. As a result, we believe that our compliance program today is the best in the industry."
The settlement amount, together with legal fees and other related costs, will result in a total accrual of $20 million that will be reflected in the Company's financial statements for the quarter ended June 30, 2005. Accordingly, when Apria files its quarterly report on Form 10-Q with the Securities and Exchange Commission, the Company's net income for the second quarter of 2005 will be reduced by the after-tax effect of the additional accrual.
Completion of the settlement is subject to the negotiation and execution of a definitive settlement agreement and dismissal by the court. Apria anticipates that several months will be required for satisfaction of those conditions.
Apria provides home respiratory therapy, home infusion therapy and home medical equipment through more than 500 branches serving patients in 50 states. With $1.5 billion in annual revenues, it is the nation's leading homecare company.
This release may contain statements regarding anticipated future developments that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Results may differ materially as a result of the risk factors included in the Company's filings with the Securities and Exchange Commission and other factors over which the Company has no control.