Pentec Health Announced the Closure and Settlement of a Civil Matter with the United States Attorney’s Office

Pentec Health today announced the closure and settlement of a civil matter with the United States Attorney’s Office for the Eastern District of Pennsylvaniadating back to 2007. Under the terms of the company’s settlement with no admission of any liability whatsoever, Pentec Health will pay $17M over a 6-year period to resolve all claims related to the company’s billing for its renal nutritional therapies, which represents approximately 1.7% of Pentec’s total revenue during the period of the investigation. This settlement also results in a full dismissal of the civil case that was pending in Federal Court. Simultaneously, Pentec Health has entered into a five-year corporate integrity agreement with the Department of Health and Human Services.

“Pentec’s resolution of this civil matter represents a business decision made in the best interest of our company and nothing more. We firmly believe that, at all times, Pentec Health billed all government payors appropriately while providing countless patients with access to these life-saving nutritional therapies,” said Joseph Cosgrove, Chief Executive Officer of Pentec Health. Mr. Cosgrove also states, “we continue to deny the assertions and allegations made by the government pertaining to this settlement which in any way challenges our business practices. Today, we are focused on the growth of our leading nutritional and targeted drug delivery therapies as well as the expansion of a new line of outsourced sterile compounding services to hospitals and health care systems throughout the United States. As a result, the company determined it was in its best interest to put this historical matter behind us and focus on our future. We appreciate working in conjunction with the government to bring this matter to a conclusion.”

Markets Insider | February 4, 2019
https://markets.businessinsider.com/news/stocks/pentec-health-announced-the-closure-and-settlement-of-a-civil-matter-with-the-united-states-attorney-s-office-1027922824