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

CMS expands therapy payment research

The government is expanding its research into alternative therapy payments, to consider more holistic changes to the way Medicare reimburses skilled nursing facilities, the Centers for Medicare & Medicaid Services announced Tuesday.

CDC tightens Ebola guidelines for healthcare workers

The Centers for Disease Control and Prevention has issued more stringent guidelines for how healthcare workers should interact with Ebola patients, following an outcry from nurses and other professionals.

Nonprofit providers face alarming market forces, must rally, LeadingAge chairman says

Nonprofit providers face alarming market forces, must rally, ...

Nonprofit long-term care providers must work together to address alarming trends, or their market share could plummet and the sector as a whole could falter, LeadingAge Chairman David Gehm told ...