Arriva execs settle allegations

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Thursday, April 25, 2019

NASHVILLE, Tenn. – Two former Arriva Medical executives have settled allegations they violated the False Claims Act by agreeing to pay $500,000 each.

The settlement resolves the United States’ claims that David Wallace and Timothy Stocksdale caused Arriva to submit false claims to Medicare that were tainted by kickbacks paid to beneficiaries in the form of free or no cost home blood glucose meters or waived or uncollected copayments during the period from Nov. 23, 2011, through Aug. 30, 2013. The settlement also resolves the United States’ claims that Wallace and Stocksdale caused Arriva to bill Medicare for medically unnecessary home blood glucose meters during the same period.

Wallace and Stocksdale, both of Florida, co-founded the Coral Springs, Fla.-based mail-order diabetes testing supply company. After selling to Alere in 2011, they remained employed as president and vice president, respectively, until Aug. 30, 2013.

Arriva ceased operations in December 2017 after an appeal seeking to reinstate its Medicare billing privileges. CMS revoked those privileges in 2016, alleging the provider submitted 211 claims for deceased patients between April 15, 2016, and April 25, 2016.

Prior to that, Arriva had been the top provider of mail-order diabetes supplies, receiving nearly $120 million in Medicare payments in 2015.

Arriva and Alere, a Waltham, Mass.-based medical device manufacturer were acquired by Abbott Laboratories in 2017.