Polymedica Corporation and two of its subsidiaries will pay the United States $35 million to resolve allegations that they submitted claims to Medicare without proper documentation. The improper reimbursement claims were for various diabetic and nebulizer products.
The settlement states that the subsidiaries, Liberty Medical Supply and Liberty Home Pharmacy, violated the False Claims Act by not obtaining a signed doctor’s order for the products and by not maintaining records documenting the need for and use of these products.
The case was the result of a whistle-blower complaints filed by Donna Ben-Barrack and Claire Schultz.
The press release from the Dept. of Justice was issued on December 2, 2004.