Kansas Medical Supplier to Pay $1 Million To Settle False Claim Allegations

KANSAS CITY, KAN. - A Dodge City medical equipment supplier has agreed to pay $1 million to settle allegations it submitted false claims to the Medicare program, U.S. Attorney Tom Beall said today.

Pos-T-Vac, Inc., a medical equipment supplier located in Dodge City, has agreed to pay the U.S. government $1 million to settle claims that it violated the False Claims Act by improperly charging Medicare for durable medical supplies.

The United States alleged that from Jan. 1, 2009 through July 27, 2012, Pos-T-Vac submitted claims for male vacuum erection supplies that were not medically necessary, lacked documentation of medical necessity, and/or were not properly ordered by a physician.

Medicare no longer covers such supplies.

“We must prevent waste, fraud and abuse in the Medicare and Medicaid programs,” said United States Attorney Tom Beall. “Billions of taxpayer dollars are at stake.”

“Our office will continue to protect the Medicare program by pursuing those providers who bill for medically unnecessary services and supplies,” said Steve Hanson, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations, Kansas City, Mo.

During the investigation, Medicare suspended payments to Pos-T-Vac. Under the terms of the settlement, the government will retain those funds and Pos-T-Vac will make additional payments to the United States.

The U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG) and the United States Attorney’s Office for the District of Kansas investigated. Assistant U.S. Attorney Jon Fleenor represented the government.