Mr. Reece admitted that from 2005-2009, he conspired with others to submit approximately $600,000 in fraudulent claims to Medicare, through billing for enteral nutrition products, a type of DME that was to be used only for patients who had feeding tubes inserted or surgically implanted in their noses, mouths or stomachs, according to the release. Court documents showed that patients Mr. Reece submitted claims for did not, in fact, receive enteral nutrition through a feeding tube. He also admitted that he delivered only a fraction of these products for which he billed Medicare.
Mr. Reece also admitted he agreed to pay kickbacks to a patient recruiter in 2005 in exchange for the referral of Medicare beneficiaries for whom he supplied DME, according to the release. He admitted that the Medicare beneficiaries were recruited for the purpose of filing claims with Medicare for DME that was medically unnecessary and was not provided.
Sentencing for Mr. Reece has been scheduled for Aug. 17.
Read the DOJ’s release on William Reece Jr.
