Kartik Bhatia of Geneva, Ill., was sentenced to two years in prison for a scheme that defrauded Medicare of more than $2 million by submitting claims for medically unnecessary durable medical equipment, according to a March 6 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.
What happened?
- Mr. Bhatia conspired with Raju Sharma and other co-conspirators to own and operate a DME company that paid telemarketing companies for orders for orthotics, including ankle, wrist, knee and back braces. In many cases, Medicare beneficiaries did not need or request the braces, and physicians whose signatures appeared on the orders often did not treat the beneficiaries or prescribe the equipment.
- After the CMS issued a payment suspension to Mr. Bhatia’s durable medical equipment company, he opened another company that engaged in the same conduct, prosecutors said.
- In August 2025, Mr. Bhatia was charged with one count of conspiracy to commit healthcare fraud and one count of making false statements.
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