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Exhibit 5.1
MONDAY JUNE 26, 7:35 AM EASTERN TIME
COMPANY PRESS RELEASE
SOURCE: Lincare Holdings Inc.
LINCARE DISCLOSES INVESTIGATION
CLEARWATER, Fla., June 26 /PRNewswire/ -- Lincare Holdings Inc. (Nasdaq: LNCR -
news) has been informed by the United Stated Attorney's Office for the Middle
District of Florida that certain Lincare employees are being investigated by a
federal grand jury concerning possible violations of federal healthcare laws. In
connection with the investigation, the Company has provided the government with
various documents pertaining to, among other things, the delivery of respiratory
and other services to patients and relating to dealings between the Company and
physicians. The Assistant US Attorney handling the matter has stated to the
Company that his investigation is ongoing and that he will seek additional
documents from the Company. The Company is cooperating with the investigation.
However, the Company can give no assurances as to the duration of the
investigation or as to whether or not the government will institute proceedings
against the Company or any of its employees or as to the violations that may be
asserted.
From the time to time, the Company receives inquiries from various government
agencies requesting patient records and other documents. It has been Lincare's
policy to cooperate with all such requests for information. The government has
not instituted any proceedings or served Lincare with any complaints as a result
of these inquiries.
Private litigants may also make claims against the Company for violations of
health care laws in actions known as qui tam suits and the government may
intervene in, and take control of, such actions. The Company is a defendant in
certain qui tam proceedings. Lincare intends to vigorously defend these suits.
The government has declined to intervene in all unsealed qui tam actions of
which the Company is aware.
As a health care provider, Lincare is subject to extensive government
regulation, including numerous laws directed at preventing fraud and abuse and
laws regulating reimbursement under various government programs. The marketing,
billing, documentation and other practices of health care companies are all
subject to government scrutiny. To ensure compliance with Medicare and other
regulations, regional carriers often conduct audits and request patient records
and other documents to support claims submitted by the Company for payment of
services rendered to patients. Similarly, government agencies periodically open
investigations and obtain information from health care providers pursuant to
legal process.
Violations of federal and state regulations can result in severe criminal, civil
and administrative penalties and sanctions, including disqualification from
Medicare and other reimbursement programs.
Statements contained in this release that are not based on historical facts are
forward looking statements, subject to uncertainties and risks, including, but
not limited to, the constantly changing health care environment, potential
reductions in reimbursement by government and third party payors for the
Company's products and services, the demand for the Company's products and
services, economic and competitive conditions, the availability of appropriate
acquisition candidates and the successful completion of acquisitions, access to
borrowed and/or equity capital on favorable terms, and other risks detailed in
the Company's Securities and Exchange Commission filings.
SOURCE: Lincare Holdings Inc.
