Ex-OFIX Manager Pleads Guilty to Medicare Fraud

Wed, 10/31/2012 - 9:23pm
Mass Device

Former Orthofix territory manager Brian Racey pleads guilty to filing $250,000 worth of false Medicare claims for the company's Physio-Stim bone growth stimulator.


Brian Racey, a former territory manager for Orthofix (NSDQ:OFIX), pleaded guilty today to federal Medicare fraud charges. Racey, who's due to be sentence in February, faces more than $250,000 in penalties and 10 years in prison.

Between 2004 and 2008, Racey allegedly forged patient medical records and altered physician prescriptions in order to justify Medicare reimbursement for Orthofix's bone-growth stimulation device, Physio-Stim, in otherwise non-covered cases.

The Physio-Stim system is an externally-worn device that emits electromagnetic fields to stimulate bone regeneration, primarily for patients undergoing spinal fusion procedures whose bones failed to heal properly.


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