Dynasplint Systems, Inc. Settles with Medicare and Dept. of Justice

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Founder and CEO George Hepburn announced that the lawsuit captioned U.S. ex rel. Deane v. Dynasplint Systems, Inc., et al., Case No. 10-cv-2085 (E.D. La.) reached a settlement agreement resolving litigation concerning both a Civil False Claims Act Lawsuit and a Medicare Administrative Overpayment claim. The claims resolved by the settlement are allegations only and there has been no determination of liability.

ROM Rehabilitation Specialists
...continuing to litigate would have further distracted us from our core mission: to provide the most innovative durable medical products to aid in restoring physical function and quality of life to our patients who suffer with joint stiffness...

In 2010, a former Dynasplint employee filed a “whistleblower” lawsuit alleging that Dynasplint had wrongfully billed Medicare Part B for dynamic splints provided to patients while they resided in skilled nursing home facilities. In December 2012, the federal government joined in the lawsuit. The lawsuit concerned how health care services and medical products are paid for under the Medicare program, which is administered by CMS.

The Medicare Program is split into distinct parts, Part A and Part B. Medicare Part A covers eligible beneficiaries requiring inpatient medical care at a per diem rate, which is calculated to cover all in-patient-related costs, paid to the providing facility. Medicare Part B covers medical and other health services, and provides payment for the rental or purchase of durable medical equipment used by the patient only if the equipment is used in the patient's “home” or in an institution that is used like a home. One of the central issues in dispute in the lawsuit concerned whether a provider of durable medical equipment such as Dynasplint was prohibited from submitting any claim for reimbursement under Part B of Medicare for equipment supplied to Medicare beneficiaries who resided in Medicare-certified skilled nursing facilities, or, as Dynasplint believed, any such prohibition only applied if the institution was primarily engaged in providing skilled nursing care. Thus, if a patient received durable medical equipment while residing in a nursing facility that was not at that time primarily engaged in skilled nursing care, the provider could submit for reimbursement for use of the equipment under Part B, as long as the patient was not under Part A nor receiving skilled nursing care.

In December of 2015, the lawsuit captioned U.S. ex rel. Deane v. Dynasplint Systems, Inc., et al., Case No. 10-cv-2085 (E.D. La.) reached a settlement agreement resolving litigation concerning both a Civil False Claims Act Lawsuit and a Medicare Administrative Overpayment claim. The claims resolved by the settlement are allegations only and there has been no determination of liability.

The Company is committed to working cooperatively with CMS to ensure continued compliance with all programs administered by CMS, and continuing the tradition of excellence established by the Company over 35 years ago.

About Dynasplint

Dynasplint manufactures, rents, and sells nearly 90 different dynamic splints that help patients regain joint range of motion. The Company, founded in 1981 by George R. Hepburn, II, employs sales consultants across the United States and is headquartered in Severna Park, Maryland, just outside of Baltimore. For more information, please contact us at:

Corporate Headquarters
770 Ritchie Highway | Suite W21 | Severna Park, MD 21146
TEL: 800-638-6771
LOCAL: 410-544-9530
FAX: 800-380-3784
http://www.dynasplint.com/

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Karen Bertolini
@Dynasplint
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