Home / News & Insights / Whistleblower Law Insights / Dept. of Justice investigates medical-supply industry

Dept. of Justice investigates medical-supply industry

The New York Times reported that the United States Department of Justice has opened a criminal investigation to determine whether hospitals are overcharging Medicare and other government-funded health programs for goods ranging from rubber gloves to x-ray machines.

Medical-supply companies have received subpoenas and hospitals are expected to receive them in coming weeks. The inquiry apparently focuses on rebates, discounts and other marketing practices, and in particular on Novation, a large group purchasing organization.

The New York Times story appeared on August 21, 2004 (registration required).

Let us help you.
Get a free, confidential case review