Crown Medical Solutions and owners Michelle and Philanzo King have agreed to pay $825,000 to resolve US government allegations that they submitted false Medicare claims for durable medical equipment that was medically unnecessary, improperly prescribed or both.
The civil settlement resolves allegations under the Access DX $36.4m False Claims Act settlement — Lawyer Monthly covering Medicare claims submitted between November 1, 2017 and April 30, 2019.
Crown Medical supplied durable medical equipment including knee braces, heel stabilisers and back braces. The US Department of Justice alleged that the company and its owners billed DOJ Charges 455 People Over $6.5B Health Fraud for equipment provided to beneficiaries without satisfying medical-necessity or physician-prescription requirements.
Michelle King served as Crown Medical’s president and chief executive and owned 50% of the company. Philanzo King was its vice president and owned the remaining 50%.
The $825,000 settlement was based on the defendants’ financial condition. Under the agreement, Crown and the Kings are jointly and severally liable for the amount, with $25,000 due initially and the remaining $800,000, plus interest, payable under a schedule running to the end of 2028.
The settlement does not constitute a finding that the defendants committed fraud. The Justice Department has expressly stated that the claims resolved are allegations only and that there has been no determination of liability.
The case began...
Crown Medical Solutions and owners Michelle and Philanzo King have agreed to pay $825,000 to resolve US government allegations that they submitted false Medicare claims for durable medical equipme...