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Post date: August 7 2003

Attorney General Recovers $400,000 In Settlement With Rochester Wheelchair Company

Attorney General Spitzer today announced that Monroe Wheelchair, Inc., which formerly did business as Patient Services and Supply, Inc., has agreed to repay taxpayers $400,000 for Medicaid overpayments improperly paid to the company.

"The recovery of these tax dollars will help ensure that the needs of Medicaid recipients are properly met," said Spitzer. "Once the error was brought to the attention of the provider, they agreed to reimburse the State."

The settlement with Monroe Wheelchair, Inc. is based on an audit conducted by the Medicaid Fraud Control Unit. The audit revealed that the company failed to take advantage of manufacturer discounts between 1995 and 1999, thus overbilling the Medicaid program for hundreds of wheelchairs supplied to program recipients.

Medicaid reimbursement for durable medical equipment such as wheelchairs is limited to the vendor's actual acquisition cost plus 50%. The acquisition cost is determined to be the lowest price offered by a manufacturer or wholesaler to the general public and includes any rebates, discounts or other valuable considerations.

In addition to repaying $400,000 to the Medicaid program, Monroe Wheelchair, Inc. also agreed to institute a three-year compliance program that will, in part, require at least three hours of training each year to managers and employees involved in sales and/or the submission of claims to the Medicaid program.

Monroe Wheelchair, Inc., is located at 295 Monroe Avenue in Rochester.

The audit investigation resulting in this repayment of Medicaid funds was conducted by Special Assistant Attorney General Jerry M. Solomon, Director of the Medicaid Fraud Control Unit's Rochester Regional Office, Supervising Special Investigator Douglas Hinchey and Associate Special Auditor Investigator Michael L. Warfield.