CGX, PGX, and Other Testing Labs are prime targets of Telemedicine Fraud Investigations
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The multistate, DME and international telemarketing scheme that allegedly happened in 17 federal judicial districts has seen two dozen people indicted.
Over $1.7 billion in claims were submitted to Medicare by 130 DME companies, of which $900 million was paid, resulting in federal losses of at least $1 billion.
It’s alleged that the swindled money is siphoned by international shell corporations, and the monies used for extravagant luxury purchases including yachts, automobiles and real estate within and outside the United States.
For federal prosecutors, this investigation is one of the grandest scale healthcare fraud schemes.
There were criminal indictments disclosed this week against 24 people, notably including physicians, CEOs, COOs, and several top executives of five (5) telemedicine companies, alongside owners of 130 durable medical equipment companies spread over 17 federal judicial districts all playing roles in scheming to bilk $1.2 billion off Medicare.
According to prosecutors, DME companies allegedly pay bribes and kickbacks to gain referrals of Medicare beneficiaries from physicians working with fraudulent telemedicine companies offering an unnecessary shoulder, back, knee, and wrist braces