NEW BRAUNFELS, Texas (AP) — A major vendor of wheelchairs and motorized scooters is shutting down for good after a year of federal scrutiny over alleged Medicare and Medicaid fraud that led to a bankruptcy filing.
The San Antonio Express-News (http://bit.ly/19QnyuK) cites a company statement in reporting that The Scooter Store plans to phase out operations and furlough its remaining 370 employees and managers. The decision came from the New Braunfels, Texas-based company's board of directors.
The company said the U.S. Centers for Medicare and Medicaid Services notified it recently that the company is losing its federal contract for reimbursement of the sale of its products. That takes effect Oct. 26.
The company statement said the federal decision "effectively eliminates" its ability to sell its assets in a Chapter 11 reorganization, so it will liquidate.
Information from: San Antonio Express-News, http://www.mysanantonio.com