Miami
A new kind of DME fraud scheme has hit the Sunshine State that may turn innocent providers into unwitting participants.
The Florida Association of Medical Equipment Services (FAMES) sent out a statewide alert to members last month warning providers of individuals who offer large cash sums to buy small HME businesses — and their provider numbers. In the contract, the buyers require providers to keep their supplier numbers open for a period of time after the transaction, during which — unknown to the seller — the buyers fraudulently bill Medicare with the “bought” supplier number. Once they bill a certain amount, they close the business.
“This is a very fast scam. The buyers continue to bill under the seller's provider number, [then get out]. The buyer bills Medicare for everything he possibly can, and the seller is stuck with the penalties,” said Javier Talamo, a health care attorney at Miami-based Kravitz & Talamo, and FAMES vice president.
The FAMES warning letter stresses that if providers do sell their business, they should cancel their Medicare supplier number immediately.
Talamo, formerly director of political services at PediStat, a Miami pediatric provider, added that the scam brings to light a loophole in the supplier number system administered by the National Supplier Clearinghouse (NSC). “Whose fault is it that legitimate business owners don't know [to close their supplier number once they sell their business]?” Talamo questioned. “A good deal of fraud in the DME industry happens by mistake. The NSC needs to do a much better [job] of enforcement.”
Although a spokesperson for the FBI in Miami declined comment, the FAMES vice president said the scheme is under investigation.
For breaking news, go to www.homecaremonday.com, the electronic news service of the home medical equipment industry.
