Medical equipment company Waukesha, Wis.-based Kinex Medical Company agreed to pay $6.9 million to resolve allegations it submitted false claims to Medicare, TriCare and other federal healthcare programs, according to a March 5 news release from the Justice Department.
The move comes after CMS implemented a six-month nationwide moratorium on new Medicare enrollment for certain DMEPOS suppliers, including applications for initial enrollment and certain changes in majority ownership. The agency said it stopped more than $1.5 billion in suspected fraudulent DMEPOS billing last year.
According to CMS, data from 2023 to 2025 shows that medical supply company specialties had a 17% revocation rate, nearly triple that of other DMEPOS supplier types, and ranked among the highest for payment suspensions, law enforcement referrals and fraud complaints.
What happened?
- Between 2019 and 2024, Kinex allegedly provided patients with medical braces they did not need and billed federal programs as though the equipment was medically necessary. The alleged conduct involved knee, shoulder and hip braces.
- The company also allegedly encouraged patients to accept the braces by waiving costs such as copays and providing other equipment at no cost.
