PSA must repay N.Y. Medicaid $239,000

Monday, October 31, 2005

ELMSFORD, N.Y. - Pediatric Services of America has agreed to pay the New York State Medicaid program more than $239,000 for selling used durable medical equipment while claiming that the equipment was new. The Norcross, Ga.-based PSA provides medical equipment to critically ill children. An investigation by the New York Attorney General's office found that between January 1998 and December 2003, the Elmsford, N.Y. regional office of PSA sold equipment used previously by other PSA patients as new equipment. Under New York's Medicaid rules, such equipment must be new to qualify for Medicaid payment. Additionally, the Medicaid Fraud Control Unit found in some instances Medicaid paid PSA twice for the same equipment. PSA declined to comment. Also in October, PSA announced an agreement to sell most of its pharmacy business to Accredo Health. Accredo will pay $72 million in cash for the pharmacy assets, with the exception of PSA's Florida unit dose pharmacy. PSA plans to focus on its core, pediatric private duty nursing and plans to grow its respiratory therapist equipment services business.