Medical equipment company owner loses appeal in Medicare fraud case

A federal appeals court recently rejected an appeal by a medical equipment supplier who was convicted of Medicare fraud.

The U.S. Court of Appeals for the Sixth Circuit determined that evidence establishing that Hussein Amr, owner of United States Medical Supply, received a high profit in the sales of power wheelchairs was allowed. The evidence showed that Amr steered patients who wanted or needed less expensive chairs to the power wheelchairs.

Amr was convicted in February 2003 on 22 felony counts, including healthcare fraud, mail fraud, illegal kickbacks, and money laundering charges. A jury also agreed to a forfeiture of more than $1 million against Amr. USMS is a durable medical equipment supply company in Livonia, MI.
 
The government argued that he bought power wheelchairs for $2,250 each but billed Medicare $4,300 for a wheelchair and an additional $800 for accessories. USMS would then receive a copayment of $1,200, usually from Medicaid or Blue Cross. As a result, Amr received a profit of more than $4,000 from the sale of each wheelchair.