N.C. government gave a state based company a $30 million no-bid contract to provide diabetics on the Medicaid roles a cheap no good testing device and all of the diabetic supplies that go with the meter. Now they find themselves in big trouble by a bankruptcy attorney. The attorney is suing the Charlotte based company called Diagnostic Devices, Inc. Accusing the owners of shady business dealings. The local TV station has been investigating this company for the past 18 months. When the state gave the little known company the no-bid contract in 2009, patient advocates expressed safety concerns about them.
The president of the Research Triangle Association of Diabetic Educators said it was not a good product and could be dangerous. The meters trade name used to test patient's BS levels is called "Prodigy."
It has been known by the Food & Drug Administration to show at least one life threatening condition where a faulty reading it gave send a child into a diabetic seizure. when asked by officals why the child had used the Prodigy meter the reply was, "it was the only one that their insurance company, (Medicaid) would pay for.
If a diabetic cannot rely on it to be accurate, it just isn't fair for people living with diabetes and who are on Medicaid to only have this one choice of testing meter.
The brothers who own & run this Diagnostic Devices meter also own a company in Florida and they have been involved in a bitter bankruptcy case with this company for the past eight years. This Florida company is called VitalCare and they also sell diabetic products.
Recently a new lawsuit has been filed by the trustee naming Diabetic Devices for violating court orders, not paying past due debts, hiding monies in others companies with which they have dealings, and stealing customers contacts, all of these charges have help make their company profitable while neglecting the responsibilities of the bankruptcy agreement.
Diagnostic devices had promised to move their companies from China to Taiwan to North Carolina which was supposed to create hundreds of jobs for North Carolina. They have been known to recently receive a huge shipment from Asia back in November 2010.
The North Carolina Department of Health & Human Resources stated that they had been assured that the company's references had been checked about this product along with the availability of the supplies and the quality of the product and they were satisfied that everything was fine. But, when the Department of Human Resources were asked if they had checked out the brothers that own these companies they said "no."
Patient advocates say due dilliggence was not done on this company or the product. and the president of the Research Triangle Association of Diabetic Educators said this was the first time in the 21 years they had been in diabetes that one such product was so bad and inaccurate.
Thankfully the contract between the state of NC and this company is due to expire later this year. DHHS said the next contract would be decided by an open bidding process.
I was so poor back over the past three years and found the need to contact the Department of Social Services for some help to pay my medical bills. This, even though I was mad at the time is one occassion where I was told I made to much to qualify for Medicaid. Just think about it I could be one of those poor people who are being forced to use an unsafe meter and supplies to test their B/Ss.
I highly recommend if any od D/C's membership is on Medicaid and is having to use this Prodigy meter in order that their insurance helps with the cost, they make immediate contact with their medical provider and get off this meter and supplies.
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