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Bain Capital owned company Ameritox accused of Medicare fraud; employee testimony filed in Tampa court last night

By on August 30, 2012

Bain Capital owned Ameritox, who once sued this $11.50 an hour urine sample collecting grandma, is in the middle of a lawsuit, in Tampa, during the Republican National Convention, and former employees are revealing institutional Medicare fraud.

According to the filing:

“Ameritox’s most disturbing conduct involves encouraging health care providers to order testing based on the patient’s insurance coverage, not on the basis of medical necessity, a practice that financially benefits Ameritox but works to the detriment of patients and certain third party payers, most notably including the federal Medicare program. This practice has enriched Ameritox’s owners and investors, including Sterling Partners, Bain Capital Venture Partners, LLC, and Sequoia Capital at the expense of the American people.”

“Ameritox trains employees to identify patients covered by Medicare and encourage their doctors to order a urine test every time such a patient visits the office.”  – Cecilia Johns, former employee

“With respect to Medicare, Ameritox encouraged its sales representatives to “take whatever steps we could to market to physicians with a high concentration of Medicare in their payer mix.” – Cathy Gipson, former employee

“Ameritox also established a policy of not compensating its sales representatives for Medicaid urine samples.” – Patrick Arguinchona, former employee

This stuff isn’t new for Ameritox. They’ve previously settled with the US Department of Justice for Medicare fraud, lost a false advertising case in a US District Court, and been the recipient of a few cease-and-desist orders from the State of Florida.

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