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OIG issues new report on DMEPOS violations in LA County

Device Regulation Alert: Safety, Compliance and Reimbursement News, March 17, 2008

Following up on prior reports of DMEPOS abuses, the OIG has issued a new report that focuses on unannounced inspections of DME suppliers in Los Angeles County.

The OIG made unannounced visits to 905 suppliers, focusing on just four of the more than 20 standards each supplier is required to follow:

• Maintain a physical facility
• Be open during reasonable business hours
• Have a visible sign
• Post hours of operation

The OIG found:

• 115 suppliers (13%) were closed or did not have a facility at the listed address
• 79 suppliers (9%) were open but did not meet at least one of the two additional standard requirements
• 124 suppliers (14%) met the requirements, but their claims shared an atypical characteristic

Los Angeles is a "hotspot" for compliance problems. The county has a history of noncompliance and numerous suppliers have been barred from billing Medicare, according to the OIG.

The report recommends:

• Further unannounced site visits and background checks to promote compliance
• An enrollment application fee for Medicare participation

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