Thursday, December 8, 2011

Shield Healthcare pays $5M to settle Medi-Cal suit

A Santa Clarita medical supply provider has paid $5 million to settle a lawsuit in which a whistleblower alleged the company overbilled Medi-Cal.

US attorney's spokesman Thom Mrozek says Shield Healthcare was accused of submitting inflated bills to the state's health insurance program for the poor.

Medi-Cal relies on Shield as a major supplier of incontinence supplies, such as adult diapers and waterproof sheeting.

Shield was accused of billing Medi-Cal more than double their net purchase price for supplies.

Shield is owned by Dharma Ventures Group. The settlement was paid Nov. 17.

The federal government gets $2 million of the settlement and the state of California gets $3 million.

A phone message was left with Shield after business hours Wednesday.

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