Orbit agrees to $7.5 million settlement

Thursday, May 28, 2015

WASHINGTON – Orbit Medical and its partial successor, Rehab Medical, have agreed to pay $7.5 million to settle allegations that it altered and forged physician prescriptions and supporting documentation for power wheelchairs and accessories, the U.S. Department of Justice announced today.

Orbit Medical says it fully cooperated and offered full transparency during the DOJ’s four-year investigation.

“We are relieved to close this chapter and move forward growing our business,” the company said in a statement to HME News.

A False Claims Act lawsuit alleged that Orbit Medical sales reps changed or added dates to physician prescriptions and chart notes to falsely document that physicians examined beneficiaries within 45 days of the face-to-face exam; changed prescriptions to falsely establish medical necessity; created or altered chart notes and other documents to falsely establish medical necessity; and forged physician signatures on prescriptions and chart notes and added facsimile stamps to supporting documentation.

“The resolution of this case helps to restore funds taken from the Medicare trust fund through the use of falsified records and billings,” said Carlie Christensen, U.S. attorney of the District of Utah.

The lawsuit was filed by former Orbit employees, Dustin Clyde and Tyler Jackson. Under the False Claims Act, a private party can sue for false claims on behalf of the government and share in any recovery. Both employees will receive $1.5 million of the settlement.