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In the Numotion wheelchair False Claims Act settlement, the company agreed to pay $13.5 million over allegations that its employees wrote, completed or signed patient evaluations used to bill Medicare and other federal health care programs for custom wheelchairs and parts. The allegation reaches behind the clinician’s signature to the person who supplied the medical judgment on the page. Inside the business, the questions are concrete: who saw the patient, who chose the equipment, and who wrote the justification for getting it paid.
United Seating and Mobility, LLC does business as Numotion, a national supplier of durable medical equipment. The Justice Department announced the wheelchair evaluation settlement on August 26, 2024. The Justice Department said the wheelchairs and parts served patients relying on federal health care programs, including veterans.
An earlier Medicaid settlement concerned a different part of the business: what Numotion told payers it had paid manufacturers for equipment. The two cases put different documents under scrutiny, the patient’s evaluation and the supplier’s acquisition cost.
The government alleged that Numotion employees authored, completed or signed evaluations that should have come from qualified medical professionals. The whistleblowers’ complaint about pre-filled evaluations describes how that allegedly happened before a therapist even evaluated the patient.
In its account of conduct discovered in 2019, assistive technology professionals employed by Numotion completed order forms, Houston Methodist assessment forms and other physical-therapy evaluation forms, then presented them to therapists and physicians for signature. These were the documents meant to explain the patient’s need for the equipment. According to the complaint, the supplier’s employees were supplying the answers before the clinician did the evaluation.
One passage describes a therapist who allegedly told a whistleblower she had not evaluated the patient:
When asked whether the therapist had completed any part of the evaluation, she said that she did not.
The signature was there. According to the complaint, the examination and the therapist’s own work were missing. That is the practical question behind the settlement: whose judgment did a finished-looking evaluation actually contain?
For patients, the alleged shortcut replaced an evaluation of their needs with the seller’s justification for payment.
The complaint also alleged that a salesperson recycled old, pre-completed evaluations for a patient. In a separate whistleblower’s account, a salesperson emailed clinical justifications in Word documents so therapists and physicians could copy and paste the language into their clinical documentation. The alleged shortcut traveled from a supplier’s email into what appeared to be the clinician’s account of the patient’s needs.
The evaluation complaint alleged that Numotion’s VENUE computer system required a wheelchair order quote before the medical order could be completed. It called that quote Revenue Validation. The complaint described expensive, unnecessary components going unevaluated by a medical professional before the order was confirmed.
It also described a base salary and commissions on the complex rehabilitation equipment each assistive technology professional sold, with commission tiers rising with annualized sales. The alleged problem ran through the sales process: the quote drove the order, and the employees selling the equipment supplied clinical language that was supposed to justify it.
The separate complaint alleged that Numotion kept employees who had falsified or improperly authored documents because of their sales revenue:
Defendant rehabilitated, as opposed to severing, such individuals because they were often times very high earners who generated significant revenues for the company.
That allegation connects the paperwork to a management decision. A company can see that an employee’s documents are wrong and still like the revenue those documents produce.
Three qui tam cases led to the 2024 settlement. This page describes two of them. Two whistleblowers brought the evaluation complaint discussed above. Another whistleblower described her internal investigations into clinical documentation and delivery records.
Numotion also voluntarily reported several overpayments and cooperated with the government’s investigation. The Justice Department said it considered the company’s self-disclosures as one of several factors in setting the settlement amount and resolving the case.
The Numotion Medicaid settlement announced on March 1, 2023, involved a $7 million payment over allegations that the company failed to disclose manufacturer discounts or its actual acquisition cost when billing for manually priced equipment. The Justice Department’s account of the pricing allegations identifies Medicaid payers in Kentucky, Missouri and D.C.
For this equipment, reimbursement depended on what Numotion actually paid the manufacturer. D.C. expressly required original documentation reflecting all discounts.
The government alleged that Numotion failed to disclose all discounts or the actual cost paid, causing these programs to reimburse the company more than it was entitled to receive. A manufacturer’s discount reduced the supplier’s cost, but the alleged failure to disclose it kept that reduction out of the Medicaid reimbursement calculation. The supplier allegedly kept the benefit while taxpayers paid the higher claim.
The relevant comparison is between what the manufacturer charged after discounts and the cost represented to the payer. Here the dispute concerned the price of equipment, while the later settlement concerned the authorship of the documents supporting the patient’s need for it.
As part of the earlier resolution, Numotion entered a five-year Corporate Integrity Agreement with the HHS Office of Inspector General. It required a centralized risk assessment program and an independent review organization to conduct annual reviews of some Medicare and Medicaid claims. The agreement added outside scrutiny to the company’s healthcare billing as well as requiring an internal review of risk.
Medicare’s power mobility coverage policy gives the clinical evaluator and the supplier’s equipment specialist distinct jobs. For Group 2 power wheelchairs with power options, Group 3 power wheelchairs and power assist systems, it requires a specialty evaluation by a licensed or certified medical professional, such as a physical or occupational therapist, with no financial relationship with the supplier.
The supplier must also employ a RESNA-certified assistive technology professional who specializes in wheelchairs and takes part directly, in person, in selecting the beneficiary’s chair. The equipment specialist belongs in that selection process. The independent clinician supplies the medical evaluation.
The policy draws another boundary at the written order required before delivery. A supplier may provide a template listing the required elements, but may not fill in or complete those elements for the practitioner. In the Numotion complaints, the alleged pre-filled evaluations and emailed justifications crossed the same practical divide: the business selling the chair supplied the clinical account used to support payment.
The Numotion complaints describe documents that could appear complete while misrepresenting what happened. The separate delivery allegations make that problem tangible. One whistleblower alleged that a Sacramento branch manager falsified a delivery ticket and internal order notes so an undelivered wheelchair could be billed to Medicare by month-end. An equipment specialist visited the patient and, according to the complaint, discovered that the patient had neither visited the office as the paperwork claimed nor received the chair.
The same complaint described a concern report identifying 263 Medicare-billed and paid orders for wheelchairs and parts that remained undelivered in a California warehouse. They show why the physical chair, the patient’s account and the internal order history matter alongside the completed claim form.
An earlier wheelchair case shows a related method. Orbit Medical and Rehab Medical paid $7.5 million in 2015 to settle allegations that sales representatives altered physician prescriptions and supporting records to obtain payment for power wheelchairs and accessories. The government described changed dates, manufactured medical-necessity language, forged physician signatures and fax stamps added to make documents appear to have come from a physician’s office.
Orbit’s allegations concerned changes to physician documents. The Numotion evaluation complaints described supplier employees creating the clinical content before a clinician signed. For an insider, useful evidence includes the version that existed before the signature, the email supplying its wording, or the patient’s account that contradicts the completed record. We work with you to connect that knowledge to the claims and the decisions behind them.
The whistleblower, a former Numotion employee who brought the Medicaid case, was to receive approximately $1.05 million from that settlement, according to the Justice Department.
A whistleblower case under the False Claims Act can pay 15% to 30% of what the government recovers. Your knowledge of who wrote the evaluation, what the equipment cost or whether it reached the patient is what we examine with you when assessing a potential case.
If you saw wheelchair evaluations written by sales staff or Medicaid claims that left out manufacturer discounts, speak with our whistleblower experts about how the paperwork was made. We build your strongest case with you around the clinical documents, purchasing records and claims, and bring in durable medical equipment fraud whistleblower lawyers who understand those connections. We stay beside you from that first account through the work of pursuing a recovery.