Watch CBS News

Anaheim Ambulance Company Settles Whistleblower Lawsuit

SANTA ANA (AP) — An Orange County ambulance company has paid more than $3 million to settle a lawsuit alleging it billed Medicare and other federal health programs to carry patients who didn't need ambulances.

The U.S. Attorney's office said Monday the payment resolves a lawsuit filed by the government on behalf of two ex-employees of Anaheim-based Lynch Ambulance. The suit was filed under the whistleblower provisions of the False Claims Act.

The lawsuit alleged that between 2001 and 2007, the company billed Medicare and other federal health care programs for transports that weren't medically necessary.

Lynch Ambulance settled the case without admitting wrongdoing.

CEO Walter Lynch said in a statement that he's pleased there's no finding his company intentionally over-billed, but he takes even technical errors seriously.

The statement says the problems stemmed from new software.

(© Copyright 2013 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.