Turmoil continues at Pacific Pulmonary

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Thursday, May 18, 2017

BAKERSFIELD, Calif. – Pacific Pulmonary Services will lay off 170 employees in July, according to a local newspaper.

In a May 12 letter to the Kern County Board of Supervisors, CEO John Parnes stated, “Neither the company nor the Bakersfield office is closing as part of this reduction in force.”

A list of jobs targeted for layoffs includes clerical and logistical positions, respiratory specialists, auditors, financial services positions, and the company’s director of pharmacy and strategic initiatives.

In April, the provider agreed to pay $11.4 million to the federal government to settle allegations that it participated in a kickback scheme. The company’s patient care coordinators in 2006 allegedly began making patient referrals to sleep testing clinics in exchange for CPAP referrals.

The government also alleged that in 2004 the provider began submitting claims for oxygen equipment without getting a doctor’s order first.

The company admitted no wrongdoing.

Shortly after the settlement was announced, parent company Teijin Limited announced that it would sell Pacific Pulmonary (Braden Partners) and Associated Healthcare systems to Quadrant Management, citing “negative developments” in the U.S. healthcare market. Teijin acquired Braden Partners in 2008.