Electromed (NSDQ:ELMD) said last week that it settled a beef with the Centers for Medicare & Medicaid Services for roughly $1 million.
New Prague, Minn.-based Electromed, which makes the SmartVest airway clearance system, said the dispute arose over some 700 Medicare fee-for-service claims it submitted from 2012 through 2015, totaling about $2.9 million. After the government health insurer rejected the claims, Electromed asked for an administrative law judge hearing to reconsider the claims, according to a regulatory filing.
The settlement calls for CMS to pony up $1.1 million within 120 days, Electromed said, in exchange for the company dropping the bid for a hearing and not pursuing any further appeals. Electromed said it plans to recognize $900,000 of the settlement as revenue during the 2nd quarter ending June 30.
ELMD shares were down -0.2% to $5.10 apiece today in mid-morning trading.