RS Medical Settles Medicare Fraud Charges

RS Medical has agreed to settle Medicare fraud claims following a whistleblower suit by one of its South Carolina employees, U.S. Attorney Bill Nettles said.

The Vancouver, Wash.-based company, which maintains an Upstate location at 1200 Woodruff Road, has agreed to pay $1,214,665 to settle the claims against it, he said. 

According to Nettles, employees of RS Medical in South Carolina and Illinois submitted claims to Medicare for Transcutaneous Electrical Nerve Stimulation (TENS) Units, conductive garments for TENS Units, back braces, cervical traction systems, muscle stimulators, and custom-fit knee braces that either lacked physician orders, lacked the required supporting documentation, and/or lacked medical necessity. 

The investigation in the District of South Carolina began in February of 2011 when whistleblower Sally Balentine filed a qui tam lawsuit in federal court under the False Claims Act, Nettles said.  

The False Claims Act allows the government to bring civil actions against entities that knowingly use or cause the use of false documents to obtain money from the government or to conceal an obligation to pay money to the government.  

Under the False Claims Act, Balentine is entitled to a share of the government's recovery, Nettles said. She will receive approximately $242,933 from the proceeds of the settlement, he said. Additionally, Balentine will receive $80,000 for her attorney fees and costs. 

The settlement was the result of a coordinated effort by the U.S. Attorney’s Office for the District of South Carolina and agents from Health and Human Services Office of Inspector General, and United States Postal Service Office of Inspector General, Major Fraud Investigations Division, Nettles said.

If you suspect Medicare or Medicaid fraud, report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at HHSTips@oig.hhs.gov.