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In brief: MA fraud, Abbott settlement, MiniMed separation, SoClean commercial

In brief: MA fraud, Abbott settlement, MiniMed separation, SoClean commercial

WASHINGTON – The Office of Inspector General (OIG) says it has identified gaps in the screening process for fraudulent DMEPOS suppliers in Medicare Advantage.

The agency issued a report on Sept. 9 saying Medicare Advantage organizations (MAOs) conduct some screening checks on in-network suppliers but fewer checks of out-of-network suppliers. It also says:

  • The Centers for Medicare & Medicaid Services (CMS) does not screen all DEMPOS suppliers before they bill Medicare Advantage because they are not in enrolled in Medicare
  • The fraud prevention tool the agency uses to prevent certain DMEPOS suppliers from billing Medicare Advantage – known as the Preclusion List – has limitations in preventing fraud

“Fraud related to DMEPOS has been a long-standing issue in Medicare, putting millions of taxpayer dollars at risk each year,” the OIG stated. “So far, CMS’s efforts to prevent DMEPOS fraud have mainly focused on original Medicare, not Medicare Advantage. Yet, Medicare Advantage is also at risk. With the recent growth in the number of enrollees, Medicare Advantage now accounts for more spending than original Medicare. In addition, OIG has seen fraud schemes – similar to those affecting original Medicare – also impacting Medicare Advantage.”

The OIG recommends:

  • Ensuring that MAOs strengthen checks of out-of-network DMEPOS suppliers
  • Strengthening the use of the Preclusion List to prevent fraudulent DMEPOS suppliers from billing Medicare Advantage
  • Requiring that all DMEPOS suppliers that bill Medicare Advantage be enrolled in Medicare, or seek statutory authority to do so if necessary

The OIG says CMS concurred with or said it would take into consideration all recommendations.

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Abbott agrees to pay $385M to settle infant formula case

ABBOTT PARK, Ill. – Abbott will pay $385 million to resolve a previously disclosed investigation and lawsuit brought by the U.S. Department of Justice (DOJ), as well as lawsuits filed by certain relators and the attorneys general of several states, relating to its 2022 recall of powdered infant formula manufactured at its Sturgis, Mich., facility.

The settlement, the company says, does not represent any finding of fault or liability.

Abbott also noted, in relation to the settlement:

  • The government, as previously indicated, has closed its criminal investigation regarding this matter
  • No unopened, distributed Abbott infant formulas have ever tested positive for Cronobacter sakazakii. (The company says consistent with this, the U.S. Food and Drug Administration (FDA) confirmed in early March 2022 that the unopened product from the homes of the infants under investigation at the time of the recall tested negative for Cronobacter sakazakii. The Centers for Disease Control (CDC) later concluded there was no definitive link between the Sturgis facility and the clinical cases under investigation at that time.)

“Nothing matters more than the safety and quality of Abbott's products,” the company stated in a press release. “We make infant formula with the same care we would for our own families and are deeply committed to earning and maintaining caregivers' trust. As we move forward, Abbott remains focused on serving the families who depend on us every day.”

Abbott also answered frequently asked questions in relation to the settlement.

Soleo Health opens two new locations in Georgia

WOODSTOCK, Ga., and FAYETTEVILLE, Ga. – Soleo Health has opened new ambulatory infusion centers (AIC) in Woodstock and Fayetteville, Ga., expanding its regional presence and bringing alternate sites of care closer to patients across the Atlanta metro area. Both locations complement Soleo Health's existing specialty pharmacy and AIC in Norcross, Ga., and offer a broad range of therapies across immunology, neurology, gastroenterology, rheumatology, and rare disease, supported by a clinical team dedicated to simplifying care coordination from prescription to treatment, the company says. “This expansion reflects our commitment to serving more patient communities in a personalized, convenient, and cost-effective setting around the metro Atlanta area," said Craig Vollmer, chief commercial officer of Soleo Health. “By advancing our clinical capabilities and service offerings, we will drive positive outcomes for patients in partnership with providers, payors, and pharmaceutical manufacturers. Additionally, our locations are equipped to serve all major health systems across Georgia, strengthening access to high-quality, coordinated care.” Along with the openings, Alicia Langley, FNP, has been appointed nurse practitioner, supervising the infusion services and supporting the patient treatment plans of referring physicians. Soleo Health Woodstock and Soleo Health Fayetteville accept major health insurance plans, including Medicare and Medicaid, to serve diverse patient populations. The company operates more than 35 infusion suites and centers across the U.S.

Medtronic seeks to complete separation of MiniMed

GALWAY, Ireland – Medtronic plc has launched an exchange offer to split off at least 80.1% of the shares of MiniMed Group. MiniMed, formerly Medtronic's Diabetes business, completed its initial public offering in March 2026 with Medtronic retaining an approximately 90% ownership interest. "Today's launch reflects our confidence in MiniMed as an independent company and in the opportunities that lie ahead," said Geoff Martha, Medtronic chairman and CEO. "MiniMed is delivering strong results, has a rich innovation pipeline and a leadership team with a clear vision for the future. Going forward as an independent company, MiniMed will have the focus and flexibility to build on its momentum, while Medtronic can further focus our capital allocation on our growing Cardiovascular, Neuroscience, and Surgical portfolios so we can continue accelerating our innovation and growth to bring new therapy options to patients around the world." The exchange offer will permit Medtronic shareholders to exchange their Medtronic ordinary shares for shares of MiniMed common stock at a 7% discount, subject to an upper limit of 4.5939 shares of MiniMed common stock per Medtronic ordinary share tendered and accepted in the exchange offer. If the upper limit is not in effect, tendering shareholders are expected to receive approximately $107.53 of MiniMed common stock for every $100 of Medtronic ordinary shares tendered.

Dexcom adds Glenn Boehnlein, former Stryker exec, to board of directors

SAN DIEGO – Dexcom has appointed Glenn Boehnlein, a health care exec and finance leader with more than 20 years of experience in the med-tech industry, to its board of directors. He served as vice president and CFO of Stryker Corp. from 2016-25, helping to guide the organization through a period of significant growth, innovation and global expansion. “Earlier this summer, we launched a search for a new independent director with deep med-tech experience and a proven track record of global scale," said Jake Leach, president and CEO at Dexcom. "Glenn's extensive leadership at one of the most respected MedTech companies in the world makes him a perfect fit. During his time at Stryker, he helped the company deliver consistently strong organic revenue growth, earnings performance, and free cash flow generation. As we execute against our newly announced long-range plan, his perspective and expertise will be an invaluable asset to our board." Boehnlein served as an advisor to Stryker’s CEO from 2025-36. Prior to those roles, he held several senior finance leadership positions within the company. Earlier in his career, he served as CFO of MyPrimeTime, a media company, and was a partner at Arthur Andersen LLP, where he led the firm's San Francisco Technology Industry Practice. Boehnlein also serves on the board of Inogen, Agilent Technologies and Sutter Health.

Medically Modern partners with endocrinology practice

NEW YORK – Medically Modern has a new partnership with an independent, multi-location endocrinology practice in Northern Virginia to manage prior authorization and fulfillment for its continuous glucose monitor (CGM) and insulin pump referrals. The company says the partnership gives the practice’s care team real-time visibility into every referred patient’s prescribed supplies. "We pivoted into this partnership strategy after hearing the same thing from providers over and over: They are drowning in paperwork from prescribing FreeStyle Libres, Dexcoms and insulin pumps,” said Corey Deutsch, founder and CEO of Medically Modern. “Our team knows the coverage process inside and out – the documentation requirements, the insurance processing, the white-glove service patients deserve. Combine that with tailored provider onboarding and technology built for each practice, and we make life easier for providers and their staff, so they can focus on what they do best: providing care.” According to Medically Modern, the practice in Northern Virginia cares for more than 10,000 patients with diabetes. The company says it operates under executed business associate agreements with its partner practices and maintains internal compliance policies addressing the Health Insurance Portability and Accountability Act (HIPAA), the Anti-Kickback Statute and the Stark Law. The company recently accelerated its payer strategy with the acquisition of Mid-Island Medical Supply.

SoClean launches national TV commercial featuring Barry the bacteria

MINNEAPOLIS – SoClean has launched a new national TV campaign in partnership with Marketing Architects, bringing its SoClean 3+ to market with a commercial told from the perspective of the bacteria the product reduces. SoClean says the 3+ is the first and only device cleared by the U.S. Food and Drug Administration (FDA) that reduces 99.9% of bacteria on compatible home-use CPAP hoses and masks after cleaning. "CPAP hoses and masks can trap and grow bacteria over time,” said Robert Wilkins, CEO of SoClean. “SoClean 3+ received FDA clearance as the first and only device in its category designed to address this bacterial issue. In an ever-growing, complex media landscape, we chose Marketing Architects to help us get the word out to the CPAP market that there is a way to sleep better at night, knowing you used a SoClean.” Marketing Architects developed the media plan targeting adults 50 and older, the audience most likely to be managing sleep apnea at home. The campaign runs on national linear TV through Annika, the agency's media-buying AI, which forecasts network rates, clearance and performance, to find efficient inventory against SoClean's target. In the commercial, Barry, a bacteria, appears on camera as a spokesman for his own kind, asking viewers not to buy the SoClean 3+ before acknowledging exactly what it does to him. Marketing Architects produced the spot and built Barry as a character SoClean can return to in future work.

Shore Capital taps former McKesson exec to lead Reliant Infusion

CHICAGO – Tommy Pourmahram has been named CEO of Reliant Infusion, a provider of specialty infusion services and a portfolio company of Shore Capital Partners. He brings more than 20 years of health care leadership to the role, most recently in senior executive positions at McKesson's Oncology & Multispecialty Segment. "We are thrilled to welcome Tommy to Reliant Infusion," said AJ Gauthier, principal at Shore Capital Partners. "His depth of health care experience and proven leadership make him an outstanding fit for this business and this team. We are equally grateful to (Founder Brad Smith), who built Reliant Infusion into one of the largest independent omnichannel infusion providers and will remain a strategic leader and board member." At McKesson, Pourmahram held commercial and operating leadership roles that contributed directly to the Oncology & Multispecialty Segment’s growth and its position as a leader in the specialty market. His experience spans specialty health, drug infusion, oncology operations, specialty biosimilars, generic injectables, GPO and distribution, and health care technology. Over his career, he has had P&L responsibility for multibillion-dollar portfolios, including businesses representing more than $25 billion in annual revenue. Shore Capital Partners says the transition reflects a deliberate plan to prepare Reliant Infusion for its next phase of growth. "Tommy is the kind of leader we build our partnerships around," said Mike Cooper, co-founder at Shore Capital Partners. "He has led at scale in specialty care and knows how to grow a business without losing sight of the patient."

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