Medical equipment company VP pleads guilty in $50M fraud scheme

A vice president for a pair of North Carolina medical equipment companies pleaded guilty to her role in a $50 million Medicare fraud scheme. 

Kala Sloan, 28, admitted to falsifying physician orders for equipment, according to a Sept. 21 Justice Department news release. Ms. Sloan was vice president of operations for Carolina Rehab Products and Blue File DMC. 

Ms. Sloan knowingly submitted forged documents, according to the release. In October 2020, Cigna conducted an audit of claims submitted by Carolina Rehab Products. The company did not have the proper documentation to justify billing the Medicare Advantage insurer. At the direction of CEO Tanya Parrish Grant, Ms. Sloan prepared blank prescription templates resembling the orders that should have been in the patient files and provided them to Cigna. 

Ms. Grant pleaded guilty in July to using the companies to bill Medicare for more than $50 million, of which she received $17 million, between 2014 and 2021. 

Ms. Sloan faces a maximum of five years in prison, according to the Justice Department.

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