FOR IMMEDIATE RELEASE                                                        CIV
THURSDAY, OCTOBER 20, 1994                                        (202) 616-2765
                                                              TDD (202) 514-1888

                                        
                  DEPARTMENT OF JUSTICE SAYS ULTRAMED WILL PAY
                U.S. $2.1 MILLION TO SETTLE FALSE MEDICARE CLAIM

    WASHINGTON, D.C. --  UltraMed Inc. will pay the United States
$2.1 million to settle civil claims that it billed Medicare for
home model pneumatic compressors, commonly referred to as
lymphedema pumps, that did not meet prescribed engineering
requirements, the Department of Justice announced today. 
Curative Technologies Inc., UltraMed's parent corporation, will
guarantee the payment.
    Assistant Attorney General Frank W. Hunger, in charge of the
Civil Division, said the settlement resolves a qui tam complaint,
United States ex rel. Keith & Visauer v. Curative Technologies,
Inc., filed in U.S. District Court in Madison, Wisconsin, July 1,
1993.  The government alleged that the defendants submitted false
Medicare claims for the pumps.  
     Lymphedema pumps are used to treat patients suffering from a
severe circulatory condition called "chronic intractable
lymphedema."  Lymphedema pumps qualify for up to $5,500
reimbursement under Medicare.  However, Medicare requires that
certain conditions be met before a lymphedema pump distributor
can bill the government for that amount.
     Under Medicare regulations, pumps must meet certain 
engineering requirements and in most cases the patient must in
fact be suffering from chronic intractable lymphedema.      
     A government investigation showed that UltraMed violated
those regulations by submitting claims under the Medicare code
that paid the highest reimbursement rate even though the pump did
not meet the required engineering standard for that code.
    "This settlement demonstrates the government's determination
to pursue and prosecute those who would defraud Medicare for
their own benefit," said Hunger.  He said Ultramed's payment was
more than twice the government's losses.  
     Under the qui tam provisions of the act, Joy Keith and Brian
Visauer, who filed the original action on behalf of the
government, are entitled to receive between 15 and 25 percent of
the proceeds.  Keith and Visauer also are entitled to contest the
adequacy of the settlement in federal court, which they have
informed the government they plan to do.     
     The federal False Claims Act permits the government to
recover three times the amount of its actual loss plus civil
penalties of $5,000 to $10,000 for each false claim.
                                   #####
94-602