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OIG on medical supplier fraud

This article was originally published in The Gray Sheet

Executive Summary

An HHS Office of Inspector General 1report released March 3 finds persisting problems in Medicare compliance among suppliers of durable medical equipment, prosthetics, orthotics and supplies (DMEPOS), including hospital beds, wheelchairs and artificial limbs. OIG inspected 905 suppliers in Los Angeles County, one of the "hotspots" of supplier problems, and found in addition to other violations that 13% of suppliers did not have a physical facility or were closed during repeated visits. OIG recommends that CMS conduct more unannounced site visits, increase prepayment reviews of DMEPOS claims, and establish minimum inventory requirements for product types. CMS says it has already addressed a number of the identified fraud vulnerabilities (2"The Gray Sheet" July 9, 2007, p. 14)
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