Tactile to pay $550K to resolve false claims allegations

BOSTON – Tactile Systems Technology has agreed to pay $550,959 to resolve allegations that it submitted false Medicare claims for medically unnecessary pneumatic compression devices, according to the U.S. Attorney’s Office for the District of Massachusetts. Tactile markets the Entre and Flexitouch devices for patients with lymphedema and chronic venous insufficiency. Medicare covers pneumatic compression devices only after a patient fails to receive adequate relief following four weeks of conservative therapy, including basic compression, and the prescribing clinician documents that failure. The government alleges that, between Jan. 1, 2019, and Dec. 31, 2024, certain Tactile sales personnel fabricated or altered medical records and other clinical documentation used to support Medicare claims. According to the settlement, some sales personnel inserted false statements indicating that patients had not improved with basic compression therapy or forged clinicians’ signatures to make it appear that the Entre or Flexitouch devices had been prescribed. In other cases, records were allegedly changed to state that patients did not experience a significant reduction in swelling after using the Entre and therefore required the more expensive Flexitouch device. Tactile terminated many of the employees involved after learning of the conduct. The allegations were brought under the whistleblower provision of the False Claims Act, which allows private parties to sue on behalf of the government and share in any recovery. The relators will receive $129,475 from settlement proceeds.