Troubled Scooter Company Facing Series of Problems 2/25/13
Associated Press
2/25/13
(Information in the following story is from: San Antonio Express-News,
http://www.mysanantonio.com)
SAN ANTONIO (AP) - Residents in a Central Texas county are wondering about
the future of one of its largest employers - a troubled power wheelchair and
scooter company - after the firm's headquarters was raided this month as part of
an investigation into alleged fraud.
The San Antonio Express-News reports (http://bit.ly/WceSN2 ) the raid capped
a tumultuous period for The Scooter Store, known for its ubiquitous television
ads.
The New Braunfels, Texas-based company earlier this month cut 150 jobs,
blaming pending government changes in claims processing and reimbursement. The
company in September laid off about 220 workers, citing a drop in Medicare
reimbursements.
In December, two U.S. senators questioned why The Scooter Store had received
as much as $87.7 million in Medicare overpayments.
Scooter Store officials have denied wrongdoing and defended their business
practices.