Part of Criminal Inquiry Into Apria Healthcare Group Closed Costa Mesa, Calif. The U.S. Attorney's office in Sacramento, Calif., has closed a yearlong criminal investigation into Apria Healthcare Group without taking action, Apria executives and federal officials said in July.

In July 1998, Apria received six subpoenas from the U.S. Attorney's office in Sacramento related to the company's billing practices for Medicare and Medicaid beneficiaries. It requested a broad range of documents from Apria's headquarters and offices in San Diego, Sacramento and Canonsburg, Pa. Two more subpoenas were subsequently issued, seeking similar billing information.

"It is gratifying to learn that, after a year of reviewing thousands of documents, the Sacramento U.S. Attorney's office has closed its criminal investigation file without making any charges," said Philip Carter, chief executive officer.

The company is still in the process of responding to two subpoenas from the U.S. Attorney's office in San Diego and one from the Department of Health and Human Services, Apria executives said.

Upon news that the investigation had closed, Apria shares rose $1.88 July 8 to close at $18.88. -K.S

Coram Seeks $50 Million From Aetna for Alleged Misrepresentation Denver In the latest round in the contract dispute between Coram Healthcare and Aetna U.S. Healthcare, Coram has filed a $50 million lawsuit against Aetna and ended its service agreement with the company. The home infusion provider alleges that Aetna misrepresented and understated the utilization of home care services by its enrollees.

The suit follows on the heels of a lawsuit against Coram filed by Aetna. While discussions about the contract were ongoing, Hartford, Conn.-based Aetna filed a complaint against Coram in the Court of Common Pleas, Montgomery County, Pa., without warning, Coram says in its lawsuit. The Aetna complaint seeks $30 million and an order requiring Coram to honor the contract.

Coram had been providing services for more than 2 million Aetna enrollees for a fixed monthly fee under a five-year agreement. In its complaint, Coram says that utilization was much higher than Aetna represented. The company is therefore seeking compensatory and punitive damages.

"We have been unable, despite numerous attempts, to resolve our dispute with Aetna without legal action," said Richard Smith, Coram CEO and president.

Aetna officials did not return calls seeking comment. -K.S