$410 Million Telemedicine DME Kickback Scheme

U.S. Attorneys in the Southern District of Georgia recently charged the operator of a durable medical equipment company with conspiring to pay kickbacks to physicians in exchange for obtaining DME orders. This action reaffirms the Department of Justice’s commitment to investigate and prosecute healthcare fraud schemes despite the ongoing public health emergency caused by COVID-19.

The operator of J1 Medical, Inc., is accused of directing physicians to sign false medical records and issue medically unnecessary orders for DME in exchange for illegal kickbacks. Through J1 Medical, Inc., over $410 million of fraudulent claims were submitted to Medicare for durable medical equipment. The investigation is ongoing and involves several other providers, telemedicine companies, and brokers of patient data.

Compensation structures in telemedicine arrangements must comply with the Federal Anti-Kickback Statute, along with similar state laws prohibiting kickbacks.

How Frier Levitt Can Help

For a review of your proposed or current telemedicine model, contact Frier Levitt.

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