Medical Supplier Pays $5M To Settle Medi-Cal Lawsuit
On Wednesday, the U.S. Attorney's office announced that Santa Clarita-based medical supply provider Shield Healthcare has settled a lawsuit in which a whistle-blower alleged that the company overbilled Medi-Cal, California's Medicaid program. Under the $5 million settlement, Shield on Nov. 17 paid $2 million to the federal government and $3 million to the state. Shield was Medi-Cal's leading supplier of incontinence products, such as adult diapers and waterproof sheeting. According to the whistle-blower, who will receive a share of the settlement, Shield inflated the sale price of the products by as much as double the purchase price.
- "Medical Supplier Settles Lawsuit Over Billing Charges" (Simmons, "L.A. Now," Los Angeles Times, 12/7).
- "Shield Healthcare Pays $5M To Settle Medi-Cal Suit" (AP/San Francisco Chronicle, 12/7).