heathtran

E-Health Solve, Inc. and Convergent Media Network, Ltd. entered into a software and services contract with, Soporex, Inc. a Delaware corporation operated out of Dallas.  This is a completely different company than the Lincare/Med4Home purchase was conducted with.  E-Health and Convergent with Busienss Associates under these contracts, and provided communication and software services for patients and hosted all of the technology necessary for the Soporex, Inc. business. See E-Health Solve, Inc. & Convergent Contract.

Med4Home demand that E-Health Solve, Inc. and/or Convergent turn over certain data files from the Soporex, Inc. (the Delaware Corporation)license with E-Health and Convergent.  When E-Health and Convergent refused to turn over these assets, based on no standing  or right to these assets to with Lincare/Med4Home, the companies sued E-Health and another bona fide provider of COPD medications, Geriatric Services of America, Inc.

Lincare/Med4Home buried evidence in the Arizona court, namely their purchase contract, and successfully obtained an injunction from the Arizona court based on false pretenses – namely that they had an interest in the data and or contract.  This dispite the agreement they entered into was very specific as to the assets that they purchased, and represented there were “no other Agreements, restrictions …” and dispite the fact that they purchased only certain assets and not the businesses.

Geriatric Services, Inc. was an existing client of E-Health solve and Convergent for services similar to those E-Health and Convergent provided for Soporex. Due to E-Health and Convergents position as a Business Associate, hosting company, and provider of communications via fax and web technologies, Physicians and patients who needed a medication source contacted E-Health about where they could place their patients and get their medications.

E-Health and Convergent had heard of a transfer to Lincare.  Since LIncare had ignored letters generated by E-Health and Convergent, to aid in the transferring the data and software under the terms of the E-Health and Convergent license, E-Health as Business Associate of Soporex, Inc., a now bankrupt company who could not provide medications sent a notice to physicians as to Geriatric Services of America being  another licensed Medicare facility. GSA began filling medications in September based on physician requests for their patients.

Lincare/Med4Home, only then, contacted E-Health and  immediately sought to prevent E-Health and Geriatric Services of America for contacting physicians – allowing physicians to become aware of other bona fide options for their patients in the market place.  This is a direct violation of the Stark Laws which prevent a supplier from manipulating a market to their advantage.

Lincare entered into a five year Corporate Integrity Agreement and paid a $12 million dollar fine for violations of the Stark Law in 2006.  Specifically Stark, and the Corporate Integrity Agreement that Lincare signed on behalf of their company and their subsidiaries and agents,  seeks to prevent insider transactions such as the one Lincare/Med4Home has now conducted.

• See a basic outline of Stark’s rules
• See Lincare Corporate Integrity Agreement

Further, Lincare/Med4Home violated any reasonable fair market value for patient files the did acquire.   Specifically the Stark Law states:

"the price that an asset would bring as the result of bona fide bargaining between well-informed buyers and sellers who are not otherwise in a position to generate business for the other party, or the compensation that would be included in a service agreement as the result of bona fide bargaining between well-informed parties to the agreement who are not otherwise in a position to generate business for the other party, on the date of acquisition of the asset or at the time of the services agreement."

Lincare/Med4Home’s Agreement was with completely separate companies than the licensee of the software and Business Associate of E-Health and Convergent.  Lincare/Med4Home contracted for the purchase of specific assets from a Missouri and North Dakota corporation with whom E-Health and Convergent had no affiliation or conract with.

Lincare/Med4Homes contract stated that their contract was specific and personal to the assets and the companies in that contract.  There was no mention or assumption of the data generated by the E-Health / Convergent software.  The E-Health and Convergent license agreement(s)  for software and data provides for specific terms under which a transfer may be made.  Lincare/Med4Home and notably, the signer on all  of the referenced Agreements, former President and CFO of Soporex, Inc. was the same on all accounts, Rick Sabolic.

Bankruptcy counsel and the Trustee have cooperated with Lincare and Med4Home, despite knowing that the data and license that E-Health Solve and Convegent were with a completely separate company, with a spate bankruptcy filing case number. Further, assumedly, the Trustee would have requested, reviewed and been aware of this fact, and the assets purchased by Lincare and Med4Home under the Agreement entered into on the eve of Bankruptcy.

Despite E-Health and Convergent’s offer to help the Trustee unravel the Soporex transaction, the Trustee Counsel further entered into the ruse in Arizona and confusion of the court system through burying the evidence of the Lincare/Med4Home acquisition contract.  Counsel entered into a joint demand letter to provide the data, not back to the Bankruptcy Estate, but to Med4Home.

• Joint Demand Letter signed by Med4Home Attorney and Bankruptcy Trustee Counsel

Despite E-Health and Convergent’s offer to help, based on many phone conversations and letters between counsel for E-Health and Covergent ,the Trustee and their contracted party,  to assist in the collection of billings from Medicare, based on an automated system developed under license by E-Health and Convergent, the Trustee enrolled the aid of a former employee of the bankrupt Soporex entities – at a cost nearly triple, to date, of the initial bid that was provided by E-Health and Convergent .  These costs are ongoing and are now in the front of the Court in the Bankruptcy hearings to be paid.

The Trustee and Trustee’s counsel have violated their duty to properly protect the Estate and the creditors by their actions in assisting Med4Home.  The Trustee has agreed to contracts for collections that have far over spent for those services for no apparent reason. The Trustee has assisted Med4Home, and thereby Lincare, in violations of the Stark Laws and the Corporate Integrity Agreement that Lincare is bound by with the OIG.