Corporate Compliance

McKesson charged with Medicare fraud scheme

Compliance Monitor, October 8, 2008

The Department of Justice joined a whistleblower suit accusing McKesson, North America’s largest durable medical equipment (DME) supplier of creating a sham DME company that submitted false claims and paid kickbacks to a nursing facility company.
Federal prosecutors allege McKesson created and managed a phony DME company named CERES Strategies Medical Services Inc. (CSMS) which was an affiliate of Beverly Enterprises, Inc., a nursing facility company.
According to prosecutors, CSMS billed Medicare for DME supplies and made it appear as though Beverly supplied its own DME. McKesson allegedly supplied those services and the two parties shared the higher reimbursement received from Medicare. In exchange for the arrangement Beverly referred all its Medicare supply needs to McKesson.
To read the DOJ press release click here


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