Corporate Compliance

Houston DME owner pleads guilty to Medicare fraud

Compliance Monitor, May 26, 2010

A Houston area durable medical equipment (DME) company owner pleaded guilty in U.S. District Court to submitting fraudulent claims to Medicare, according to a Department of Justice (DOJ) press release.

William M. Reece Jr., 54, owner of Bright Star Medical Equipment Health Services, and coconspirators allegedly submitted $600,000 in fraudulent claims for DME equipment that was either medically unnecessary or never provided between 2005 and 2009. According to the DOJ, Reece billed Medicare for enteral nutrition products, which are used by patients who need feeding tubes inserted in their noses, mouths, or stomachs. The beneficiaries that Reece submitted claims for did not need enteral feeding tubes.

In his plea, Reece, admitted to paying kickbacks to a patient recruiter in exchange for Medicare beneficiaries’ information.

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