October 20, 1994  Ultramed Inc.

Ultramed Inc. has agreed to pay over $2 Million Dollars to settle claims asserted in a qui tam action filed by two private relators, Joy Keith and Brian Visauer. The allegations of the case concerned Lymphedma pumps, which are devices used to treat medical patients with severe circulatory conditions. Medicare will reimburse medical providers with sums up to $5,500 for the use of Lymphedema pumps. Medicare requires, however, that the pumps must meet certain engineering requirements, and it was alleged that Ultramed violated Medicare requirements by billing Medicare for pumps which had not met those engineering requirements.

Ms. Keith and Mr. Visauer will receive a share of the settlement for having filed the qui tam case.

See U.S. Dept of Justice Press Release 10/20/94

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