WAUKESHA, Wis. (WFRV) – A Wisconsin-based medical equipment company agreed to pay nearly $7 million in a resolution over allegations that it submitted false claims to multiple federal healthcare programs.
According to Brad Schimel, the United States Attorney for the Eastern District of Wisconsin, Kinex Medical Company, LLC, based out of Waukesha, sells and distributes medical equipment like knee and shoulder braces nationwide.
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A whistleblower reported that the company had submitted false claims to Medicare and multiple other federal programs, and federal investigators alleged that the incidents occurred from 2019 to 2024.
Kinex allegedly provided patients under those programs with unnecessary braces, subsequently billing those federal programs as if they were necessities. The company also reportedly convinced patients to accept the braces by waiving costs and offering free equipment.
Kinx will pay $6,925,000 to resolve the allegations, also entering an agreement with the United States Department of Health and Human Services to ensure compliance in the future.
