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

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

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