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Inspector general presses CMS on use of surety-bond system
Modern Healthcare

Federal auditors say regulators at the CMS are failing to use yet another tool in their arsenal to fight healthcare fraud—the requirement that sellers of durable medical equipment must post surety bonds, including enhanced fees for high-risk providers. A Sept. 12 memo from HHS Deputy Inspector General Stuart Wright says the CMS has failed since 1997 to implement a congressionally mandated system that would force equipment distributors to post bonds that could be collected in cases when equipment distributors won’t or can’t repay proceeds of fraud or improper payments.