Gov’t settles with SuperCare

OAKLAND, Calif. – California Attorney General Rob Bonta has announced a $3.31 million settlement against SuperCare Health for allegedly billing Medicare and Medi-Cal for servicing ventilators that were no longer necessary. The proposed settlement resolves allegations that the Downey-based company submitted fraudulent claims to Medi-Cal in violation of the state and federal False Claims Act. Per the proposed settlement, SuperCare will pay $3.31 million to multiple government plaintiffs, with California receiving approximately $327,000. A whistleblower alleged that SuperCare, which serves patients in Southern California and Nevada, continued to service non-invasive ventilators that were no longer being used by patients and were not medically necessary and, therefore, no longer eligible for Medi-Cal reimbursement. A subsequent three-year investigation by the California Department of Justice’s Division of Medi-Cal Fraud and Elder Abuse (DMFEA), working with the U.S. Attorney’s Office for the Central District of California and the Nevada Medicaid Fraud Control Unit, found that claims submitted by SuperCare from May 2013 through October 2019 validated the whistleblower’s claims. SuperCare provided the following statement in response to the settlement: 

"The settlement fully resolves allegations that certain patients failed to continuously use validly-prescribed non-invasive ventilators (NIVs), over a six year period, in accordance with government guidance. The resolution includes no corporate integrity agreement or ongoing reporting and monitoring. This settlement continues our ongoing updates to compliance, processes and procedures relating to NIV usage.

SuperCare Health remains dedicated to treating and providing equipment and services to patients with chronic respiratory diseases by increasing general education and patient engagement. We also continue to educate lawmakers and regulators on the value of NIVs in treating chronic respiratory diseases. 

Today’s resolution will not alter the company’s equipment offering and we fully intend to maintain our course of reaching persons with chronic respiratory disease across the Western United States. SuperCare Health strives to work closely with CMS and the DME industry to formalize NIV coverage guidelines that align with CMS’s standard of care and, most critically, allow patients with end-stage COPD and chronic respiratory diseases to receive appropriate care while remaining in their homes."