From WisPolitics.com/WisBusiness.com …
— A Waukesha-based medical equipment company will pay nearly $7 million in a settlement related to allegedly submitting false claims to federal health programs.
That’s according to an announcement today from the office of Brad Schimel, U.S. Attorney for the Eastern District of Wisconsin. In a statement on the settlement, he said it imposes a “significant penalty” on Kinex Medical Company while making taxpayers whole.
“Medicare, TRICARE, and other federal programs only pay for medical equipment that patients actually need,” he said. “Kinex, however, induced patients to receive braces that neither the patients nor their doctors thought they needed, all in an effort to receive taxpayer money.”
The business, which sells and distributes knee, shoulder and hip braces, allegedly submitted false claims to these programs in addition to the Federal Employees Health Benefits Program, and the Office of Workers Compensation Programs of the Department of Labor, Schimel’s office said.
In addition to providing unneeded medical devices, the company allegedly convinced patients to accept them by waiving co-pays and offering other free equipment, the announcement notes.
Kinex has agreed to a “corporate integrity agreement” with the federal government as part of the settlement, along with paying $6,925,000 to resolve the allegations.
Schimel’s office notes the investigation leading to this outcome stemmed from a whistleblower complaint filed under the False Claims Act, so the whistleblower will get part of the settlement amount.
The company did not immediately respond to a request for comment on the settlement.
See the release below.
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