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Seventh Street Medical Supply, Inc
AndyS
Andy Scolnick, VP
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Thursday, December 31, 2009

Compliance Standards for Consignment Closets and Stock and Bill Arrangements

I. SUMMARY OF CHANGES: The purpose of this change request is to define and prohibit certain
arrangements where an enrolled supplier of durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) maintains inventory at a practice location which is not owned by the enrolled DMEPOS supplier, but rather, owned by a physician, non-physician practitioner or other health care professional for the purpose of distribution, commonly referred to as a consignment closet and/or stock and bill arrangement.

In addition, this change request will instruct physicians, non-physician practitioners or other health care professional’s practices that use of consignment closets and/or stock and bill arrangements (as defined above) must be in compliance with current standards.

Hopefully, this will discourage some doctors that still live in the 80’s and want “rent for referrals”.  It sickens me to see physicians trying to dip in every pot to make a buck these days. They prescribe for a profit. 

Seventh Street Medical Supply, stocks hundreds of braces in our warehouse, not just a small coat closet of profitable items. 

I also hope it will discourage companies like DonJoy that are known to stock doctors’ offices with braces and either pay rent or show the doctors how to bill for these items.

What bothers me even more is when patients come to my office with a prescription from a particular office or group that I know stocks their own medical equipment.  The only reason the person is at my office is because the reimbursement is either so low and there is not enough profit to be made by the physician’s office or the patient has no dme coverage.  So, they ship them on their way and then tell their patient to go to a local medical supplier.

Thanks for nothing doc…

 Leave the medical equipment for suppliers like myself to fit and explain the equipment properly all the time, not just when it suits you.  If we don’t have the proper size or product we will order it, not just grab whatever is in “The Closet”.

 Andy Scolnick, VP

Seventh Street Medical Supply, Inc

307 E. Pennsylvania Blvd.

Feasterville, PA 19053

(215) 396-2450

www.seventhstreetmedicalsupply.com

info@seventhstreetmedicalsupply.com

6:21 pm est

Wednesday, December 16, 2009

Couple charged in leading Medicare equipment fraud

Here is another reason why Medicare is in shambles. 

Our current system needs to be reformed in some capacity. But, we need to take a couple steps back and see what the real problems are first.  There is way too much FRAUD and ABUSE going on in this industry. 
Lowering prices on medical equipment, capping products and stopping patients from their right to choose which medical supply company that they want to use is not the answer.

Here is another black eye to our industry.

Robert Saul and his wife allegedly thought they could get rich by giving people expensive power wheelchairs and other medical equipment - equipment they didn't need - and falsely billing Medicare.

And they thought they had their bases covered by allegedly telling baffled recipients that Philadelphia was giving out $3,200 wheelchairs for free, or having sources in doctors' offices intercepting phone calls from confused patients.

But the alleged scheme fell apart, according to U.S. Attorney Michael L. Levy.

Saul, 36, and his wife, Sheila, 51, were charged yesterday by the U.S. Attorney's Office with defrauding Medicare and other programs by submitting more than $1.2 million in bogus claims.

Saul and his wife, who both live in Philadelphia, own R&V Medical Supplies, which is located on the 11th floor at 1420 Walnut St., in Center City. The company is still in business.

The Sauls did not respond to requests for comment yesterday.

Also charged yesterday were Lisa Burnett, 40, of Philadelphia, and Carol Mason, 57, of Norristown.

Burnett and Mason worked at a Philadelphia nonprofit that provided service to seniors and the disabled. They allegedly provided the Sauls with client information that was used to bill Medicare for unneeded medical supplies, and for which they were paid kickbacks.

In separate court filings, Susan Landolf, 27, and Debra Stallings, 43, both of Philadelphia, also were charged with participating in the scheme. Landolf worked at a medical clinic and then at R&V. Stallings worked at a private medical practice. Since they were charged in criminal informations, it is likely they have negotiated guilty pleas.

"This case involves breaches of trust at every level: From the medical office employees who sold patients' identity information, to the people charged today who used the Medicare Trust as their personal ATMs," Levy said.

"Any Medicare beneficiary who gets equipment that they know nothing about, or who sees payments for equipment on their explanations of benefits that they do not recognize, should contact the number on the explanation of benefits forms immediately to report it," Levy said.


Andy Scolnick, VP

Seventh Street Medical Supply, Inc

307 E. Pennsylvania Blvd.

Feasterville, PA 19053

(215) 396-2450

www.seventhstreetmedicalsupply.com

info@seventhstreetmedicalsupply.com

11:22 am est

32 accused of $60M in Medicare fraud in 3 states
finance-20091215-US.Medicare.Fraud.Busts

This is why our healthcare is in shambles. It is people like this that need to be banned from doing any type of business in the healthcare profession. A slap on the wrist is not acceptable.

FORT LAUDERDALE, Fla. — Federal agents arrested 26 suspects in three states Tuesday, including a doctor and nurses, in a major crackdown on Medicare fraud totaling $61 million in separate scams.

Arrests in Miami, Brooklyn and Detroit included a Florida doctor accused of running a $40 million home health care scheme that falsely listed patients as blind diabetics so that he could bill for twice-daily nurse visits.

The U.S. Department of Justice and U.S. Department of Health and Human Services said the indicted suspects lined up bogus patients and otherwise billed Medicare for unnecessary medical equipment, physical therapy and HIV infusions.

Indictments were issued for 32 people in all, but the status of the other suspects wasn't immediately known.

Miami Dr. Fred Dweck, along with 14 people with whom he worked, was accused in an indictment of running a scam to tap a Medicare program that pays very high rates to care for the sickest patients.

Dweck referred about 1,279 Medicare beneficiaries for expensive and unnecessary home health and therapy services, bribing the owners of two Miami clinics to join the scam. He also faked medical certifications, according to the indictment.

A telephone listing for Dweck could not be found and it was unclear if he had a lawyer.

"No matter what type of fraud is committed, there is one common denominator and that denominator is greed," Assistant Attorney General Lanny Breuer said. "Medicare fraud is not a victimless crime. It hurts every American taxpayer by raising the cost of health care."

The raids come a week after a report that Miami-Dade County received more than half a billion dollars from Medicare in home health care payments intended for the sickest patients in 2008, which is more than the rest of the country combined, according to a report by the Department of Health and Human Services' Office of Inspector General. Medicare paid the county about $520 million, even though only 2 percent of those patients receiving home health care live here.

In Detroit's raids, suspects paid recruiters to find patients willing to feign symptoms to justify expensive testing, including nerve conduction studies, federal authorities said.

A mother and son were charged in Brooklyn with billing Medicare $246 per patient for expensive shoe inserts reserved for diabetes patients, even though they only provided cheap, over-the-counter versions.

Including Tuesday's arrests, a Medicare Fraud strike force formed by the Justice and Health departments has now charged suspects accused of bilking Medicare of more than $1 billion in less than two years.

The pilot strike force, which started in Miami in 2007, has indicted more than 460 suspects in Medicare fraud scams. The program is now in Los Angeles, Houston and Detroit. HHS Secretary Kathleen Sebelius also announced Tuesday the operation will expand to Tampa, Fla., Baton Rouge, La., and Brooklyn.

Cleaning up an estimated $60 billion a year in Medicare fraud will be key to President Barack Obama's proposed health care overhaul. HHS and DOJ have promised more money and manpower to fight the fraud.

Andy Scolnick, VP

Seventh Street Medical Supply, Inc

307 E. Pennsylvania Blvd.

Feasterville, PA 19053

(215) 396-2450

www.seventhstreetmedicalsupply.com

info@seventhstreetmedicalsupply.com

7:49 am est


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307 East Pennsylvania Boulevard Feasterville, PA 19053
"Feasterville Business Campus"
Phone: 215-396-2450 · 800-723-8110
Fax: 215-396-2454
info@seventhstreetmedicalsupply.com
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