Malvern Medical Device Company Agrees To Pay $44.8 M Settlement

PHILADELPHIA — BioTelemetry, Inc. and its subsidiary CardioNet, LLC, headquartered in Malvern, agreed to pay $44.8 million to settle civil allegations that they violated the False Claims Act by submitting claims to federal health agencies for work performed overseas by unqualified technicians, according to federal prosecutors.

The claims were submitted to Medicare, TRICARE, the Veterans Health Administration, and the Federal Employee Health Benefits Program for heart monitoring tests, according to the court records.
The settlement was reached in a case before U.S. Magistrate Judge Lynne Sitarski in U.S. District Court here.
The government alleged that BioTelemetry and its CardioNet division improperly billed Medicare and other federal healthcare programs for certain cardiac monitoring services that were performed overseas in violation of federal law prohibiting payment for services outside the United States.
More specifically, the government alleged that in 2013, CardioNet contracted with a company located in India for the provision of diagnostic and analysis services of heart monitoring data.
The government alleged that BioTelemetry—with the knowledge of then senior management—diverted certain data to India when the domestic workflow became backlogged.
“Federal healthcare beneficiaries deserve care, including remote cardiac monitoring, that complies with federal law and is provided by qualified clinical personnel,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the justice department’s civil division.
“Today’s settlement reminds all providers that they must observe those standards and reflects the department’s commitment to pursue knowing violations of federal health care program requirements.”
Thomas H. Suddath Jr., Philadelphia attorney for BioTelemetry, Inc., was not available for comment.
According to U.S. Attorney for the Eastern District Jacqueline C. Romero:

• In 2014, over 29% of the ECG Data reviewed in connection with tests, and over 78% of the ECG Data reviewed in connection with event monitoring tests, for Medicare patients were allegedly reviewed by technicians located in India.
• In 2015, those numbers allegedly rose to over 47% and over 88%, respectively.
• Although BioTelemetry began implementing technological controls in late 2015 to prevent personnel in India from accessing the domestic workflow, those controls were insufficient, and technicians in India allegedly continued to review and analyze data.

“Providers participating in federal health care programs are obligated to obey the laws meant to protect the integrity of those programs and the quality of care furnished to patients,” said Special Agent in Charge Maureen R. Dixon of the Department of Health and Human Services.
“Protecting TRICARE, the healthcare system for military members and their dependents, is a top priority for the Defense Criminal Investigative Service, the law enforcement arm of the Department of Defense Office of Inspector General,” stated Special Agent in Charge Patrick J. Hegarty, Northeast Field Office.