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HHS OIG: Incomplete and Inaccurate Licensure Data Allowed Some Suppliers in Round 2 of the Durable Medical Equipment Competitive Bidding Program That Did Not Have Required Licenses

May 1, 2016

Pursuit's Take

CMS awarded contracts to 63 suppliers that did not meet licensure requirements in at least one competition for which they received a contract under Round 2 of the Durable Medical Equipment, Prosthetics, Orthotics, and Supplies Competitive Bidding Program primarily because of incomplete and inaccurate licensure data. Additionally, 14 suppliers need to be further researched by CMS and its contractors to determine if they met or had not met licensure requirements.

Suppliers received contracts without meeting all licensure requirements because the licensure database that CMS and its contractors used when awarding contracts to suppliers was incomplete and inaccurate.

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