The U.S. Justice Department is investigating the medical supply industry over concerns that some health care providers bilked government programs including Medicare, The New York Times reported on Saturday. The Times said more than a dozen medical supply companies have received subpoenas as part of the criminal probe, and that hospitals were expected to be subpoenaed soon. The government is looking into whether the hospitals and clinics overbilled Medicare and Medicaid for supplies by failing to pass on discounts they were getting from suppliers. Novation, a Texas cooperative that manages about $23 billion in purchases for 2,200 hospitals and health care centers, said it had received a subpoena from U.S. attorneys in Dallas. "We don't know the exact scope of the investigation but we're cooperating fully," Novation spokesman Lynn Gentry told Reuters. --more 2300 Local Time 2000 GMT
