BioTelemetry a cardiac remote monitoring company based in Malvern, Pa., has agreed to pay $6.4 million penalty to resolve a False Claims Act case.
The company's subsidiary CardioNet allegedly overbilled Medicare and other federal health programs for its mobile cardiac outpatient telemetry services. The Department of Justice announced the penalty March 19, saying the bills were unnecessary.
The DOJ said CardioNet was aware that the services were not eligible for coverage under Medicare for patients who suffered from moderate or mild palpitations because less expensive monitors can transmit data about those conditions.
"Billing for a higher-level service that is not necessary to treat a patient's condition to receive higher reimbursement from federal healthcare programs will not be tolerated," said acting Assistant Attorney General Benjamin C. Mizer of the Justice Department's Civil Division. "Such conduct wastes critical federal healthcare program funds and drives up the costs of healthcare for all of us."