MedSource Inc. Shutting down

MedSource Inc. Shutting down

Posted in the West Columbia Forum

smalltown employer

Nicholasville, KY

#1 May 10, 2009
I run a small buisness in VA. and Med Source Inc. is one of my suppliers, I have been told by another company located in Lexington, that Med Source Inc. and/or owner/owners is in the middle of a very large lawsuit and maybe nolonger in buisness by the end of this year! I was wondering for ordering reasons if there was truth behind any of this, and someone mentioned that this was one of the best ways to find out! If anyone has any information, I would appericiate it very much!
Concerned patient

Murrells Inlet, SC

#2 Apr 20, 2010
Read more: State, Medsource, Medicaid, Medicare, False Claims
Columbia, South Carolina ---- Acting United States Attorney Kevin F. McDonald stated Monday that Medsource Inc., a medical supply company based in West Columbia, South Carolina, agreed to pay $227,895.25 to settle allegations by the federal government that it falsely billed Medicare and Medicaid for medical supplies that were never delivered.
Federal authorities alleged that for 13 months beginning in February 2007, Medsource sought payment from Medicare and Medicaid for approximately $80,000.00 in diabetic supplies it claimed to have provided to area patients but never delivered.
Under the federal False Claims Act, the government can recoup three times the actual loss to the government plus penalties for any false claims that are submitted to Medicare or Medicaid. Medicare and Medicaid do not allow claims or payment for equipment or supplies until they have been delivered to the beneficiary.
The case was investigated by Special Agent Chris Lott with the Department of Health and Human Services, Office of Inspector General, and Special Agent Boeman Wong with the Federal Bureau of Investigation. Assistant United States Attorneys Jennifer Aldrich and Fran Trapp of the Columiba office handled the case.

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