BioTelemetry (Malvern, Pennsylvania) has settled with the U.S. Department of Justice over allegations the company induced physicians between 2008 and 2011 to use two non-specific diagnostic codes to obtain coverage of the company's mobile cardiac telemetry products. The company argued that the billing practice was at the time allowed by a Medicare local administrative contractor (MAC), but the Centers for Medicare & Medicaid Services subsequently adjusted the related coding structure to account for the use of such systems.

BioTelemetry said the fine of $6.4 million was reflected in the company's 2014 financial statement, and the company's argument was in part that physicians had been using the company's product for palpitations. The diagnosis was permitted by an unnamed MAC, but CMS moved on June 29, 2011 to add a specific code for palpitations and eliminate the two non-specific codes used by providers.