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The Scooter Store to pay $4M to settle False Claims Act allegations

Device Regulation Alert: Safety, Compliance and Reimbursement News, May 21, 2007

Wheelchair supplier The Scooter Store will pay $4 million to resolve allegations that it violated the False Claims Act, reports the Department of Justice (DOJ). The company will also give up the right to reimbursement for most of its pending Medicare claims.

According to the DOJ, The Scooter Store allegedly engaged in a multi-media ad campaign in which it promised Medicare beneficiaries power scooters that would be paid for by Medicaid, Medicare, and other insurers. However, instead of the power scooters that were advertised, beneficiaries received power wheelchairs that they did not want or need, or couldn't use.

In addition, The Scooter Store also obtained thousands of "Certificates of Medical Necessity" from physicians who were unaware of the company's fraudulent practices. The company then billed government and other insurers for power wheelchairs, which were more expensive than power scooters.

The Scooter Store will operate for the next five years under a Corporate Integrity Agreement with the HHS Office of the Inspector General. Go to the DOJ Web site to read more about the settlement.

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