Texas ambulance company sues government over suspended Medicare payments

Acute Care Ambulance Services says it is at risk of closing after payments were suspended due to an allegation of fraud


By Laura French

MERCEDES, Texas — A Texas ambulance company has sued the federal government after its Medicare payments were suspended due to an allegation of fraud. 

Acute Care Ambulance Services officials say the suspension puts the agency at risk of closing and has threatened the health and safety of its patients during the COVID-19 pandemic, according to The Monitor. Acute Care Ambulance Services primarily serves elderly patients for scheduled, recurring non-emergency transports. 

Attorney Mark S. Kennedy, who is representing the ambulance service, said the government has failed to provide a hearing for the company to challenge the basis of the suspension, violating its right to due process under the 5th Amendment. 

According to the suit, the suspension stemmed from a single denied claim due to insufficient documentation of a Medicare beneficiary's symptoms.

The company plans to file a motion asking for an emergency injunction to halt the suspension. A scheduling conference related to the suit is scheduled for Oct. 14 in a Southern Texas district court. 

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