LAKE FOREST, Calif.--Apria Healthcare has reached a preliminary agreement with the government and whistleblowers to pay $17.6 million, without admitting any wrongdoing, to settle allegations of Medicare overbillings.

The settlement involves two civil lawsuits that alleged the company submitted incomplete or inaccurate documentation to Medicare from mid-1995 through 1998. Throughout the litigation, which began more than seven years ago, Apria has said that "errors and omissions" may have been made but maintained the amount and significance of the deficiencies was overstated. In 2001, the government said the company owed $103 million in overpayments, which officials estimated with penalties could have turned into a total liability between $4.8 billion to $9 billion.

With legal fees and other costs, the tentative settlement will reach $20 million, which will appear on financial statements for the quarter ending June 30, according to a company statement. It could take several months to reach a final agreement.

"We are pleased that we have been able to reach an acceptable compromise with the government concerning our billing documentation and record-keeping during the period following the merger that created Apria 10 years ago," company CEO Lawrence M. Higby said in the statement.

"Apria has further enhanced its industry-leading commitment to compliance with applicable laws and regulations by increasing the resources we commit to our formal compliance programs," he continued. "This includes extensive training, internal audits and other steps taken to ensure that our compliance program meets the expectations of our patients, customers, auditors and government officials. As a result, we believe that our compliance program today is the best in the industry."

In June, the $1.5-billion provider announced it was for sale and had called in investment banker Morgan Stanley to consider possible offers. The company operates more than 500 branches in 50 states.