Justice Department Opens Broad Investigation of Hospital Purchasing Activities

According to various news reports the Department of Justice (DOJ) has opened a national investigation of the medical-supply industry to assess whether hospitals and other providers are fraudulently overcharging Medicare and other federal and state health care programs for various goods.



A New York Times article reports that, federal subpoenas have been sent out by the DOJ to a substantial number of medical-supply companies relating to the way that suppliers market products to hospitals, nursing homes, clinics, etc. that serve Medicare and Medicaid patients. The article also indicates that the investigation is likely to expand and will include the investigation of specific hospitals and other health care providers.