Corporate Compliance

Mattress supplier targeted in $10 million fraud scheme

Compliance Monitor, June 22, 2005

The federal government on June 16 filed an information against a medical supply company accused of submitting more than $10 million in fraudulent bills to Medicare and Medicaid, the Associated Press (AP) reported June 20.

Group II Medical Supports, LLC, of Beckley, WV, was alleged in the information--a document that generally implies cooperation with a government investigation--to have instructed its representatives to submit false documents to government payers saying the Medicare and Medicaid patients who received their special mattresses had pressure sores even when they did not, the AP reported.

If found guilty of the allegations, which are alleged to have occurred between January 1998 and February 2004, Group II faces a fine of $500,000 or twice its gross gain or loss, five years of probation, a $400 special assessment, and restitution, the AP reported.

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