A Colorado medical device company admitted to orchestrating an elaborate health care fraud scheme that resulted in the overbilling of patients and insurers by hundreds of millions of dollars.<\/p>\n
Zynex Inc.<\/a>, an Englewood-based company that manufactures and sells medical devices used for pain management and rehabilitation, entered into an agreement Tuesday with the U.S. Department of Justice to avoid prosecution.<\/p>\n The company, as part of the deal, agreed to pay between $5 million and $12.5 million in penalties \u2014 the final tally will depend on the company\u2019s earnings and profit during the settlement period \u2014\u00a0and will forfeit millions of dollars in unpaid claims.<\/p>\n The company admitted to participating in a conspiracy to commit health care fraud, securities fraud, mail fraud and other violations, the U.S. Attorney\u2019s Office for the District of Rhode Island announced in a news release<\/a>.<\/p>\n The agreement comes a month after a federal grand jury indicted two former top Zynex executives<\/a> who allegedly spearheaded the years-long scheme.<\/p>\n Zynex, in its deal with the government, also admitted to collecting more than $873 million for its products, including more than $600 million for supplies, \u201cthe vast majority of which were the result of fraud,\u201d investigators said.<\/p>\n Have you used Zynex for medical devices? We want to talk to you.<\/a><\/p>\n The company acknowledged that it shipped and billed for medically unnecessary supplies in excess quantities and misled investors who were unaware of the fraudulent billing practices.<\/p>\n Zynex agreed to implement enhanced compliance and corporate governance reforms “designed to prevent future misconduct,” the DOJ said, and will cooperate with the government’s ongoing investigations.<\/p>\n \u201cThis resolution addresses the seriousness of the fraud committed by Zynex while recognizing the substantial turnaround in conduct implemented under new management,\u201d U.S. Attorney Charles C. Calenda said in the news release.<\/p>\n