The Associated Press reported that, according to the lawsuit, the savings a supplier with 10,000 patient customers could accrue over the course of a year would be $118,000 — $11.88 per year, per patient.

Philips Respironics has restructured the call center pricing and now supply companies who use medSage pay a flat monthly price for each patient, regardless of whether the patient uses a Respironics mask.


"This office has made a substantial commitment to combating fraud," said U.S. attorney Bill Nettles of the District of South Carolina, whose district worked alongside the Civil Division's Commercial Litigation Branch, and HHS Office of Counsel to the Inspector General and Office of Investigations and the National Association of Medicaid Fraud Control Units, to secure the settlement.

"Our commitment has made this district one of the leaders on behalf of whistleblowers. We hope that those who commit fraud will recognize that it is our goal to make the consequences more than just the cost of doing business," added Nettles.

According to the National Sleep Foundation, more than 18 million Americans have sleep apnea, a condition that causes people to have breathing pauses that last at least a few seconds while they try to sleep.

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