A Wisconsin durable medical equipment company owner was sentenced to 18 months in prison for conspiracy to pay healthcare kickbacks to physicians according to a Jan. 30 press release.
What happened?
- Bruce Johnson was sentenced after pleading guilty to violating the federal Anti-Kickback Statute. The case stemmed from Mr. Johnson’s ownership of Kestrel Medical, an Oconomowoc, Wis.-based supplier of orthotic devices, including ankle, knee, back and shoulder braces.
- Beginning in 2018, Mr. Johnson paid kickbacks to companies that purported to provide marketing services in exchange for signed physicians’ prescriptions for DME that Kestrel submitted to Medicare, the release said.
- As a result of the conspiracy, Medicare paid more than $2 million to Kestrel. Before the company entered bankruptcy proceedings, Mr. Johnson also transferred $150,000 to one of Comino’s companies to divest Kestrel of assets, according to the release.
- Mr. Johnson will also serve three years of supervised release and pay more than $2 million in restitution to Medicare.
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