Cooley Medical settles allegations
By HME News Staff
Updated Wed October 24, 2018
LEXINGTON, Ky. - Cooley Medical Equipment has agreed to pay more than $5.2 million to settle allegations that it violated the False Claims Act by misrepresenting the ingredients it used in certain compounded medical creams. The Prestonburg, Ky.-based provider previously operated a pharmacy that made compounded creams and billed government insurers like Medicare, Kentucky Medicaid, Department of Veterans Affairs and Veterans Health Administration for them. Instead of obtaining the required prior authorizations to use bulk powder forms of Lidocaine and Prilocaine, the company falsely stated the creams were made with cream-based ingredients. Cooley Medical self-disclosed this to the U.S. Attorney's Office, took steps to resolve the problem and no longer operates a compounding pharmacy.
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