Mobility Products to Pay $2.8 Million to Settle Fraud Allegations

TAMPA, Fla.–Mobility Products Unlimited will pay $2.78 million
to resolve civil fraud allegations, federal prosecutors announced
May 25.

The settlement ends a government investigation into whether the
South Daytona, Fla.-based provider improperly billed Medicare for
used wheelchairs and scooters as if they were new, according to the
office of U.S. Attorney Paul Perez with the Middle District of
Florida.

The government also alleged that MPU billed separately for
unbundled wheelchair and scooter accessories (mainly seatbelts and
adjustable-height armrests) and offered Medicare beneficiaries
manual wheelchairs for free or at a drastically reduced price in
order to secure the sale of a power chair, the attorney’s office
said.

In addition to the payment, MPU and its owner, John Ward,
entered into a five-year corporate integrity agreement, according
to the attorney’s office. The deal requires MPU to hire an
independent organization to conduct a comprehensive claims review,
including determination of medical necessity.

MPU–the country’s second largest power wheelchair and scooter
provider, according to officials–advertises heavily on TV. In a
statement, the company acknowledged no wrongdoing and noted that
Ward became CEO in July 2005. The investigation covered a period
from January 1999 through May 2005.

“We are pleased to have resolved these complex matters by
working closely with the government. Mobility Products Unlimited
fully cooperated with the government during the course of their
one-and-a-half year inquiry, and I believe that it is in the best
interest of the company to put these prior period matters behind
us,” Ward said in the statement.

The settlement agreement was reached with the U.S. Attorney’s
Office for the Middle District of Florida, the Department of
Justice, Civil Division, and the HHS Office of Inspector
General.