CFO of Compass Healthcare pleads guilty to fraud scheme

Daniel K. Lane, Jr., the vice president and CFO of St. Louis-based Compass Healthcare — a durable medical equipment business — has pleaded guilty to conspiring to commit healthcare fraud, according to the Department of Justice.

Department of Justice Compass Healthcare specializes in providing compression stockings to patients for various conditions. The stockings come in a number of levels of tightness, and the cost of the different types of stockings varies.

Mr. Lane was responsible for billing insurance companies for the compression stockings Compass Healthcare provided, and he set up the company's billing system to automatically bill the insurance companies for the most expense type of stocking, regardless of which type had been provided to the patient, according to the report.

Mr. Lane and others from Compass Healthcare conspired to include false diagnoses on insurance claims to ensure the company would receive payment for the fraudulent claims.  Through the scheme, thousands of false insurance claims were submitted.  

Sentencing for Mr. Lane is scheduled for Nov. 19.

More articles on healthcare fraud:

Ohio cardiologist charged with causing unnecessary heart surgeries as part of fraud scheme 
Identifying fraud in a mountain of Medicare data is an endless pursuit for agents 
Many Medicare fraud issues addressed in draft bill 

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