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Whistle-Blower Action Faces En Banc 9th Circ.

(CN) - The 9th Circuit agreed Wednesday to hold an en banc rehearing on whether to revive claims that Kinetic Concepts overbilled Medicare.

Former Kinetic employees Steven Hartpence and Geraldine Godecke are the plaintiffs in the consolidated appeal.

A summary of the allegations that Law360 ran last year says Kinetic wanted Medicare to reimburse its VAC Therapy accelerated wound healing devices, using a payment modifier code allowing for automatic payments.

"The code allowed KCI to avoid strict review and rejection of its claims for uses that weren't covered under Medicare," Law 360's summary of the complaint continues.

A three-judge panel of the 9th Circuit met in Pasadena this past July to hear an appeal by the whistle-blowers over the dismissal of their action, court records show.

There is no record of a decision, but the federal appeals court noted Wednesday that the case will be heard en banc.

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