What kind of company is Arriva Medical?

Arriva Medical: An Overview

Arriva Medical LLC is a former mail-order diabetes testing supplier and parent company in the United States. The company's headquarters is located in Coral Gables, Florida. It was founded in 1996 and quickly became the nation's largest diabetes testing supplier, providing a wide range of products and services to individuals with diabetes.

Legal Issues and Controversies

In recent years, Arriva Medical has been embroiled in a number of legal issues stemming from allegations of fraudulent Medicare billing practices. In 2017, Arriva lost its contract with the federal government's Centers for Medicare & Medicaid Services (CMS) due to allegations of overcharging for testing supplies. The company subsequently went out of business but was later acquired by Alere, a medical device company.

In 2019, the United States Department of Justice joined a False Claims Act lawsuit against Arriva Medical, alleging that the company knowingly submitted false claims to Medicare. The suit alleged that Arriva Medical improperly billed Medicare for medically unnecessary supplies, paid kickbacks to doctors and other healthcare providers, and engaged in other illegal practices to defraud the government.

In August 2021, Arriva reached a historic $160 million settlement over the False Claims Act lawsuit, marking one of the largest-ever whistleblower settlements in the history of U.S. healthcare fraud cases. The settlement resolved allegations that the company had improperly billed Medicare for diabetes testing supplies and other products and services. The settlement also resolved allegations that Arriva provided kickbacks to healthcare providers to induce them to prescribe the company's products.

Conclusion

Despite its legal issues, Arriva Medical had a significant impact on the diabetes testing industry in the United States during its time in operation. The company provided critical testing supplies and services to individuals with diabetes and helped improve their quality of life. However, the controversies surrounding the company serve as a reminder of the importance of ethical business practices and proper oversight in the healthcare industry.