Charlotte Medical Device And Equipment Manufacturer Agrees To Pay Over $780,000 To Resolve Allegations Of False Claims Act Violations

CHARLOTTE, N.C. – Charlotte-based BSN Medical Inc. (BSN) has agreed to resolve allegations that it marketed and promoted various products that did not meet the Medicare or Medicaid program’s reasonable and necessary requirements, thereby causing the submission of false claims for payment to the health care programs, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. BSN agreed to pay $785,672.14 to resolve the allegations.  

BSN is a medical device and equipment manufacturer located in Charlotte, that specializes in the areas of compression therapy, wound care and orthopedics. The settlement resolves allegations that from January 1, 2015 through December 31, 2017, BSN marketed and promoted various products that were not reimbursable because BSN had either not obtained approval from the Medicare Pricing, Data Analysis and Coding (PDAC) contractor, or for which PDAC approval had expired, in connection with three Healthcare Common Procedural Coding System (HCPCS) Codes, specifically, E2607, L0625 and L0626.

The allegations arose from a lawsuit filed by a whistleblower under the qui tam provisions of the federal False Claims Act and multiple state false claims act statutes.