Corporate Compliance

CMS targets equipment vendors in Florida, Los Angeles

Healthcare Auditing Weekly, July 10, 2007

CMS Administrator Leslie Norwalk has "had enough," and in a move to stamp out Medicare fraud in Florida and Southern California, is requiring every medical equipment provider to reapply for a license, the Washington Post reports.

The two-year pilot project will cover about 7,500 suppliers in those two locations where Medicare has the largest number of beneficiaries and the most providers of durable medical equipment. Fraud may total hundreds of millions of dollars, according to Norwalk.

If the experiment succeeds, Medicare may expand it to other parts of the country, Norwalk said. In the first six months of the current fiscal year, Medicare paid $2.7 billion to equipment suppliers in Florida and $976 million in California.

Read the Washington Post's report here.

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