Overview
- Englewood, Colorado–based Zynex entered a nonprosecution agreement after acknowledging conspiracies to commit health care, securities and mail fraud.
- Investigators say the company collected more than $873 million, including over $600 million for supplies, with most of the revenue tied to fraudulent shipments and billing.
- Penalties will scale with future earnings to total $5 million to $12.5 million, and forfeitures cover unpaid claims including more than $85 million billed to Tricare and about $13 million to other payers.
- Zynex admitted sending equipment patients did not order and shipping medically unnecessary supplies in excessive quantities, then billing insurers and patients.
- The agreement requires bankruptcy court approval and imposes governance and compliance reforms as the company cooperates with ongoing investigations.