The Justice Department has sued medical device maker NeuroSolutions 100 and its owner and CEO, Michael Bingham, alleging they submitted false Medicare claims by billing a noncovered electro-acupuncture device as a surgically implanted neurostimulator. The civil complaint, filed June 22 in the U.S. District Court for the District of South Dakota, seeks damages and penalties under the False Claims Act.
According to the complaint, NeuroSolutions 100 operated a diabetic care clinic for the Oglala Sioux Tribe in Pine Ridge, S.D., and directed billing for an externally applied electrical stimulation device using Medicare billing codes reserved for surgically implanted neurostimulators. The government alleged the device did not require surgery, was not covered by Medicare under the billed codes and was instead attached around or behind patients’ ears.
The DOJ alleged the defendants submitted approximately 103 false claims, billing Medicare about $1.12M and receiving about $547,749 in improper reimbursements. The complaint also alleges NeuroSolutions 100 continued using the billing codes despite CMS guidance stating electro-acupuncture devices should not be billed as implantable neurostimulators.
In addition to False Claims Act allegations, the government asserted claims for common law fraud, unjust enrichment and payment by mistake, and is seeking treble damages, civil penalties and repayment of funds allegedly paid by Medicare.
Becker’s has reached out to NeuroSolutions 100 for comment and will update this story if a response is received.
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