Acting United States Attorney Alexander C. Van Hook announced that Shreveport Prosthetics, Inc. (“SPI”) has agreed to pay $1.6 million, plus interest, to the federal government to resolve allegations that it violated the False Claims Act for false supplier billings to the Medicare program.
SPI is a Louisiana corporation that provides upper and lower extremity prosthetics to patients in north Louisiana. The civil settlement resolves allegations that when SPI’s supplier number was deactivated, SPI funneled its claims to Medicare through a supplier in Texas for services that were rendered by SPI in Louisiana.
SPI also routinely waived patient coinsurance amounts over a three-year period, resulting in Medicare being overcharged for the billed services. This lawsuit was initiated by former office administrator/billing specialist Kimberly Throgmorton under the qui tam, or whistleblower provisions, of the False Claims Act. Under the False Claims Act, private citizens can bring suit on behalf of the United States and share in any recovery.