West Columbia Medical Supply Company Settles False Claims Allegations
| U.S. Attorney’s Office March 29, 2010 |
COLUMBIA, SC—Acting United States Attorney Kevin F. McDonald stated today that Medsource Inc., a medical supply company based in West Columbia, South Carolina, agreed to pay $227,895.25 to settle allegations by the federal government that it falsely billed Medicare and Medicaid for medical supplies that were never delivered.
Federal authorities alleged that for 13 months beginning in February 2007, Medsource sought payment from Medicare and Medicaid for approximately $80,000.00 in diabetic supplies it claimed to have provided to area patients but never delivered.
Under the federal False Claims Act, the government can recoup three times the actual loss to the government plus penalties for any false claims that are submitted to Medicare or Medicaid. Medicare and Medicaid do not allow claims or payment for equipment or supplies until they have been delivered to the beneficiary.
The case was investigated by Special Agent Chris Lott with the Department of Health and Human Services, Office of Inspector General, and Special Agent Boeman Wong with the Federal Bureau of Investigation. Assistant United States Attorneys Jennifer Aldrich and Fran Trapp of the Columbia office handled the case.