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On September 27, 2024, the United States, acting through the United States Attorney for the Eastern District of Pennsylvania, entered into a Settlement Agreement with this business and its Founder and Chairman, Mario Garcia, Jr., to settle alleged violations of federal law.
The United States allegations included:
That it has certain claims against EMSI and Mr. Garcia because, during the period from January 1, 2018 to December 31, 2019, EMSI and Mr. Garcia knowingly submitted or caused to be submitted false claims for payment to the TRICARE Program in violation of federal law. This included providing patients with and submitting claims for supplies, such as electrodes and batteries, during the same month in which claims were submitted for devices, which the United States allege included initial supplies.
Since at least 2018, the owner operated or participated in providing patients with and submitting claims for electrodes under Healthcare Common Procedure Coding System, where claims for those patients had been previously or were contemporaneously submitted for conductive garments, which the United States allege lacked medical necessity because the conductive garments obviated the need for electrodes.
To settle these allegations, EMSI and Mr. Garcia, agreed to pay the United States a total of $20,000,000 (Twenty Million Dollars), plus interest accruing thereon from the Effective Date of the Agreement, of which constitute restitution to the United States.
On September 27, 2024 the business entered into a Settlement Agreement with the Unites States of America, acting through the United States Attorney for the Eastern District of Pennsylvania. The Settlement Agreement settles allegations that the business knowingly submitted or caused to be submitted false claims for payment to the TRICARE Program in violation of federal law. Under terms of the Settlement Agreement, the business agreed to pay the United States a total of $20,000,000. The Settlement Agreement was for settlement purposes only and should not be considered as an admission of guilt or finding of violation of the law.
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