Safeguards fail to prevent fraud among some durable medical equipment suppliers, GAO finds

Share this article:
Safeguards fail to prevent fraud among some durable medical equipment suppliers, GAO finds
Safeguards fail to prevent fraud among some durable medical equipment suppliers, GAO finds
Some durable medical equipment, prosthetic, and orthotics suppliers (DMEPOS) are abusing the Medicare system, despite fraud-prevention safeguards, according to a new report from the Government Accountability Office.

In its investigation, GAO investigators created two false suppliers in Virginia and Maryland, the Bureau of National Affairs reported. The fake vendors were approved to bill Medicare, even though neither met all of the 25 supplier standards required of DMEPOS companies. Nursing homes deal regularly with DMEPOS suppliers and some facilities even have established their own supplier businesses.

Responding to the GAO report findings, the Centers for Medicare & Medicaid Services acknowledged there are gaps in oversight and that more actions needs to be taken to protect the Medicare program from fraudulent DME suppliers, BNA said in a news story. CMS is requiring that by September 2009 all DME suppliers be accredited and submit verification of their accreditation to the National Supplier Clearinghouse, the contractor responsible for verifying that potential suppliers meet federal standards.

For more on the report, go to http://www.gao.gov/new.items/d08955.pdf.
Share this article:

More in News

Long-term care continues to lead in deal volume and value: PwC report

Long-term care continues to lead in deal volume ...

Long-term care bucked healthcare industry trends with strong merger and acquisition activity in the second quarter of 2014, according to newly released data from professional services firm PricewaterhouseCoopers.

Empowering nurse practitioners could reduce hospitalizations from SNFs, study finds

Granting more authority to nurse practitioners is associated with reduced hospitalization of skilled nursing facility residents, according to recently published findings.

Pioneer ACO drops out of program, despite reductions in skilled nursing utilization

A California healthcare system has become the latest dropout from the Pioneer Accountable Care Organization program, despite reducing skilled nursing facility utilization and improving its readmission rates. Sharp HealthCare announced its decision in a quarterly financial statement released Tuesday.