Embattled Arriva Medical closes

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Tuesday, November 7, 2017

CORAL SPRINGS and BOCA RATON, Fla. – Arriva Medical is closing its facility in Coral Springs and laying off 142 employees, the Sun Sentinel reports.

Additionally, American Medical Supplies is closing its store in Boca Raton and laying off 40 employees, the newspaper reports.

The layoffs will go into effect Dec. 31, according to letters from company officials to the state obtained by the Sun Sentinel.

Both Arriva Medical and American Medical Supplies provide testing equipment and supplies to Medicare beneficiaries with diabetes, and are owned by Alere in Waltham, Mass., which was recently acquired by Abbott Laboratories.

Earlier this year, Arriva Medical lost an appeal seeking to reinstate its Medicare billing privileges. CMS revoked those privileges in 2016, alleging the provider submitted 211 claims for decreased patients between April 15, 2016, and April 25, 2016.

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

As for American Medical Supplies, a company official told the Sun Sentinel the company was “just not profitable.”