BioTelemetry (BEAT) Enters Settlement with U.S. Justice Dept. Over non-Specified Diagnosis Codes

BioTelemetry (Nasdaq: BEAT) announced the completion of the Department of Justice investigation with the signing of a settlement agreement between the two parties. Per the agreement, BioTelemetry will pay $6.4 million to the Department of Justice, which was reflected in the Company's 2014 financial statements.

The settlement relates to allegations that BioTelemetry encouraged physicians to use two non-specified diagnosis codes to ensure coverage of mobile cardiac telemetry between November 2008 and June 2011. It is the Company's belief that physicians utilized these non-specified codes for palpitations, a diagnosis that was permitted under the local coverage determination but for which no corresponding diagnosis code was provided. On June 29, 2011, Medicare eliminated this ambiguity by adding a specific diagnosis code for palpitations and removing the two non-specified diagnosis codes.

Joseph Capper, President and Chief Executive Officer of BioTelemetry, Inc., commented, "We are thankful to have the investigation completed. As previously discussed, the Company was not the original target of the investigation and was fully cooperative throughout this inquiry. While we believe the facts did not support the Government's allegations, we entered into settlement negotiations due to the cost and burden of the investigation on the Company. As the terms became more reasonable, we felt that it was in the best interest of the Company and our shareholders to settle the case. Under the terms of the agreement, there was no determination of liability and BioTelemetry made no admission of wrong doing. In addition, the Company was not required to enter into a corporate integrity agreement.

"We can now put this matter behind us and focus completely on executing our strategy in an ethical and compliant fashion, as has always been the case."

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