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NormaTec Industries Agreed to Pay $198,000 for Allegedly Violating the Civil Monetary Penalties Law by Submitting Claims for DME Supported by Fabricated Medical Records

On December 30, 2024, NormaTec Industries, LP (NormaTec), Watertown, Massachusetts, entered into a $198,324.89 settlement agreement with OIG. The settlement agreement resolves allegations that an employee of NormaTec improperly created prescribing physicians’ orders for durable medical equipment (DME) and medical records and other documentation supporting the medical necessity of the DME that should have been created by the prescribing physician. NormaTec submitted certain claims for that DME and received payment for those claims from Federal health care programs using Healthcare Common Procedure Coding System (HCPCS) codes E0651, E0652, E0667, and E0668. OIG’s Office of Investigations and Office of Counsel to the Inspector General, represented by Senior Counsel Srishti Sheffner, collaborated to achieve this resolution.

Action Details

  • Date:December 30, 2024
  • Enforcement Types:
    • CMP and Affirmative Exclusions