Settlement made in Medicaid fraud case

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Friday, July 25, 2003 | 9:51 a.m.

SUN CAPITAL BUREAU

CARSON CITY -- Nevada's Medicaid program will receive $169,000 as part of a nationwide settlement with a company that bilked the state-federal program out of an estimated $49 million in a kickback and fraud scheme.

Ross Products Division, a subsidiary of Abbott Laboratories, agreed to the reimbursement with the states and the federal government, Attorney General Brian Sandoval said Thursday.

Ross provides "enteral" pumps used to feed patients directly through the intestines. The company gave payments to nursing homes and medical suppliers to buy their pumps, provided free pumps if the homes and suppliers would be a certain amount and told the homes and suppliers they could bill Medicaid or Medicare to collect for the free pumps.

Tim Terry, director of the Medicaid fraud control unit in the attorney general's office, also said C.G. Nutritionals, another subsidiary of Abbott, will plead guilty in federal court to obstructing the investigation into these illegal practices and will pay a $200 million fine to the federal government.

He also said that Ross claimed rival companies were doing the same thing.