LiveCare Inc. Announces Resolution of Investigation with the U.S. Department of Justice After Proactive Self-Disclosure
Rhea-AI Summary
LiveCare Inc. (LVCE) has announced the resolution of a U.S. Department of Justice investigation regarding Anti-Kickback Statute and False Claims Act allegations. The investigation stemmed from a self-disclosure made by LiveCare in July 2023 after discovering potential non-compliance with Medicare rules for remote patient monitoring (RPM) services patient referrals.
The company conducted an internal investigation through external healthcare enforcement attorneys, which identified several risk areas requiring attention. LiveCare proactively disclosed these concerns about marketing practices to the U.S. Department of Health and Human Services Office of the Inspector General.
In response, LiveCare implemented corrective actions, including significant changes to patient acquisition methods and RPM service billing practices. CEO Max Rockwell emphasized the company's commitment to compliance and ethical business practices, highlighting the implementation of enhanced compliance measures to ensure continued operational integrity.
Positive
- Proactive self-disclosure and cooperation with authorities demonstrates strong corporate governance
- Resolution of DOJ investigation removes regulatory uncertainty
- Implementation of enhanced compliance measures reduces future regulatory risks
Negative
- Identified non-compliance with Medicare rules could impact historical revenue
- Changes to marketing practices and billing systems may affect future revenue growth
- Potential reputational damage from regulatory investigation
Venice, Florida, Feb. 04, 2025 (GLOBE NEWSWIRE) -- LiveCare Inc. (OTCMKTS: LVCE), today announced the resolution of an investigation by the U.S. Department of Justice of allegations related to the Anti-Kickback Statute and the False Claims Act. The resolution was the result of a self-disclosure LiveCare made to the government in July 2023 and the company’s cooperation with the Department of Justice throughout its investigation.
- In early 2023, the Company learned that certain business practices may have been out of compliance with Medicare rules governing the referral of patients for remote patient monitoring (RPM) services. In response, LiveCare engaged external healthcare enforcement attorneys to conduct an internal investigation. This thorough review identified several areas of potential risk to be addressed to ensure full compliance with Medicare rules and applicable regulations. LiveCare promptly disclosed the matter to the U.S. Department of Health and Human Services Office of the Inspector General. The disclosure outlined concerns about the Company’s marketing practices. LiveCare also implemented a series of corrective actions aimed at improving its operations. These efforts included significant enhancements and changes to the way the company acquires patients and bills for its RPM services.
“At LiveCare, we take compliance very seriously,” said Max Rockwell, CEO of LiveCare Inc. “When we identified areas where we fell short, we took immediate and transparent action by reporting the issues to the government and working diligently to implement necessary corrective measures. Our priority is always the wellbeing of our patients, and we have enhanced our internal compliance practices to monitor compliance with the law.”
“We understand that trust is essential in healthcare, and our commitment to ethical business practices is unwavering,” Rockwell added. “In addition to fully cooperating with the Department of Justice and relevant authorities, we have implemented a comprehensive set of enhanced compliance measures. These steps will ensure that we continue to operate with the utmost integrity, providing the highest level of care to our patients.”
About LiveCare
LiveCare remains committed to providing high-quality remote patient monitoring services to individuals with chronic conditions, including Type 2 diabetes. The company’s patient-centered approach leverages innovative technology to improve health outcomes and empower patients to manage their conditions more effectively. LiveCare’s dedication to enhancing the patient experience is at the core of its mission and will continue to guide the company as it moves forward.
Contact:
Investor Relations Department
Phone: (941) 225-6699
Email: public-relations@livecarehealth.com
FAQ
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