Surgical Supply Company Sues HHS Over Fraud Alert

Reliance Medical Systems has filed a lawsuit against HHS, asserting a government fraud alert claiming physician-owned surgical supply companies were “inherently suspect” violated the company’s Constitutional rights to free speech and due process.

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Reliance, a company that collaborates with spine surgeons to design customized implants and surgical tools, wants to speak with surgeons about forming physician-owned companies. However, Reliance claims HHS’ warning about physician-owned companies like these has endowed them with a presumption of guilt, violating the right to due process, and stifled Reliance’s right to free speech.

Reliance seeks a court ruling that would declare HHS’ warning invalid.

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