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Tag: DOJ


News

Guilty plea entered for $424M fraud scheme

September 10, 2019HME News Staff

WASHINGTON - The owner and CEO of a telemedicine company has pleaded guilty to a $424 million conspiracy to defraud Medicare and receive illegal kickbacks in exchange for DME orders, the Department of Justice has announced.Lester Stockett, the owner of Video Doctor USA and Telemed Health Group, has pleaded guilty to one count of conspiracy to defraud the United States and pay and receive healthcare kickbacks, and one count of conspiracy to commit money laundering. In connection with his plea agreement,...

DOJ, Fraud, Medicare, Orthotics


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Vendors

Pricing structure costs Respironics $34.8M

March 25, 2016Liz Beaulieu, Editor

MURRYSVILLE, Pa. - HME providers must now pay for automated resupply services from Respironics regardless of whether or not they buy the company's products.Respironics, one of the “big three” manufacturers of sleep therapy products, changed the pricing structure for medSage services to a per-patient, per-month fee for all providers, in the wake of a whistleblower lawsuit and investigation by the Department of Justice that has cost the company millions of dollars to settle.“As the...

DOJ, respironics, resupply


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News

Orbit agrees to $7.5 million settlement

May 28, 2015HME News Staff

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...

DOJ, Healthcare fraud, Lawsuit, Orbit Medical, Power wheelchairs


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News

Gov't to Orbit Medical: We want our money back

April 15, 2014HME News Staff

WASHINGTON - The Department of Justice (DOJ) has intervened in a False Claims Act lawsuit against Orbit Medical and Jake Kilgore for allegedly altering and forging physician prescriptions and supporting documentation for power wheelchairs and accessories.On Oct. 23, 2013, a federal grand jury in Utah indicted Kilgore, former vice president and sales manager, on three counts of healthcare fraud, three counts of false statements related to health care and three counts of wire fraud.“The government...

DOJ, Healthcare fraud, Lawsuit, Orbit Medical, Power wheelchairs


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