Judge deals setback to Arriva Medical

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Tuesday, May 2, 2017

CORAL SPRINGS, Fla. – Arriva Medical on April 25 lost an appeal seeking to reinstate its Medicare billing privileges, according to news reports.

Earlier this month, a spokesperson for the provider of diabetes testing supplies told HME News, “Arriva is in the midst of the administrative appeals process, with an appeal pending before an administrative law judge.”

An administrative law judge for the U.S. Department of Health and Human Services has now ruled Arriva Medical’s admission that it shipped supplies to nine beneficiaries despite knowing they were deceased was enough to “demonstrate an abuse of billing privileges,” according to Boston Business Journal.

Arriva Medical blamed those shipments on “consumer fraud” and believes they do not merit a ban on reimbursement, the journal reported.

CMS revoked Arriva Medical’s billing status in 2016, alleging the provider submitted 211 claims for decreased patients between April 15, 2016, and April 25, 2016.

The setback follows a decision by Abbott Laboratories earlier this month to move forward with its acquisition of Alere, the parent company of Arriva Medical, albeit for a reduced price of $5.3 billion vs. $5.8 billion. Abbott and Alere have been in and out of court for months, with Abbott trying to back out of the deal.

The ALJ’s decision will not affect the pending acquisition, the journal reported.