Thursday, June 7, 2012

Texas firm to pay millions in Medicare fraud case - Columbia Missourian

 A Dallas-area medical manufacturer has agreed to pay $42 million in penalties to settle civil and criminal cases related to fraudulent claims it made to Medicare and other federal health care programs when selling bone growth stimulator devices, the Justice Department announced Thursday.
The settlement is part of the federal government's ongoing nationwide crackdown on Medicare fraud that is believed to cost taxpayers between $60 billion and $90 billion each year.
Orthofix Inc. will pay more than $34.2 million to settle a whistleblower civil lawsuit under the False Claims Act that alleged the company improperly waived patient co-payments, resulting in overpayments by federal programs. The suit also said the company paid kickbacks to physicians and their staffs.
Authorities said Orthofix, based in the Dallas suburb of Lewisville, also pleaded guilty in a related criminal case to a felony charge of obstruction of a federal audit and has been ordered to pay a nearly $7.8 million criminal fine.

Texas firm to pay millions in Medicare fraud case - Columbia Missourian

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