New York medical supply company to pay U.S. millions
Healthcare Auditing Weekly, December 2, 2008
Bayer Healthcare in Tarrytown, NY, agreed to a $97.5 million settlement with the United States over allegations claiming it paid kickbacks to diabetic suppliers and caused those suppliers to submit false claims to Medicare.
Between 1998 and 2002, Bayer allegedly paid Liberty Medical Supply approximately $2.5 million to convert patients to Bayer supplies. Bayer also allegedly paid $375,000 to 10 other diabetic suppliers for the same reason, according to a Department of Justice (DOJ)press release.
Bayer manufactures diabetic self-testing supplies such as glucose monitors and testing strips. The company contracts with direct-to-patient diabetic suppliers who market and sell these products to beneficiaries and submit claims for reimbursement to Medicare.
Bayer also agreed to enter into a corporate integrity agreement with the OIG. The CIA includes specific requirements for the board of directors and management that will enable the OIG to closely monitor company practices affecting federal healthcare programs and beneficiaries, the press release said.
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