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HHS OIG Work Plan: FDA Oversight And DME, Inpatient Payments Make List

This article was originally published in The Gray Sheet

Executive Summary

The Department of Health and Human Services Office of Inspector General 1outlined Oct. 1 more than 300 new and ongoing investigations on its to-do list for fiscal year 2009, including digging into how Medicare pays for durable medical equipment and examinations of hospital inpatient payments and FDA device oversight

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KCI billing records subpoenaed

Negative pressure wound therapy (NPWT) device maker Kinetic Concepts Inc. received a subpoena from the HHS Office of Inspector General in February regarding billing practices for its V.A.C. system at four regional durable medical equipment carriers, KCI disclosed in its annual report, filed with the Securities and Exchange Commission Feb. 26. The firm is in discussions with OIG regarding the scope of the subpoena and plans to cooperate. "The review is in its initial stages and we cannot predict the time frame in which it will be resolved," KCI said. OIG began investigating NPWT payment over-billing in 2005, released a report in 2007 and expects to publish another in 2009 (1"The Gray Sheet" Oct. 6, 2008, p. 9). "We do expect the government-led cost control efforts in the space to continue," J.P. Morgan analyst Michael Weinstein wrote in a Feb. 27 note

KCI billing records subpoenaed

Negative pressure wound therapy (NPWT) device maker Kinetic Concepts Inc. received a subpoena from the HHS Office of Inspector General in February regarding billing practices for its V.A.C. system at four regional durable medical equipment carriers, KCI disclosed in its annual report, filed with the Securities and Exchange Commission Feb. 26. The firm is in discussions with OIG regarding the scope of the subpoena and plans to cooperate. "The review is in its initial stages and we cannot predict the time frame in which it will be resolved," KCI said. OIG began investigating NPWT payment over-billing in 2005, released a report in 2007 and expects to publish another in 2009 (1"The Gray Sheet" Oct. 6, 2008, p. 9). "We do expect the government-led cost control efforts in the space to continue," J.P. Morgan analyst Michael Weinstein wrote in a Feb. 27 note

Trial Run Of Expanded Medicare DME Claims Review Planned For FY 2009

The Centers for Medicare and Medicaid Services plans to expand reviews of certain durable medical equipment claims in fiscal 2009, based on recommendations from the HHS Office of the Inspector General

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