Laboratory services billings are reviewed

Laboratory services billings are reviewed Gambro has learned that the billing records of its laboratory services division are being reviewed as part of an effort by Medicare and the State of Florida to review the billing practices of laboratories that provide testing for end stage renal disease patients. The laboratory that was acquired by Gambro in 1997, formerly operated under the name of Vivra Laboratory Services, has been informed by its Medicare carrier that it suspects that the laboratory has been overpaid for services provided prior to December 1, 1996. The specific focus on the carrier's review is not clear from the notices the laboratory has received to date, and no determination of the amount of any possible overpayment has been made known to the laboratory. Nonetheless, Medicare payments to the laboratory have been suspended for a limited period of time while the Medicare carrier examines patient records to determine if any such overpayment exists. The carrier also has expressed concerns about a recent increase in the laboratory's billings for total calcium tests. Gambro believes that this increase is due to a change in Medicare billing practices that requires the separate identification and billing of calcium tests rather than billing those tests as part of a panel of tests. The billing practices of Gambro's other laboratory facility in Florida also are the subject of review for suspected overpayments. Although no specific allegations have been made by the carrier, it has indicated that its initial review revealed a lack of adequate documentation and Medicare payments have been temporarily suspended while the review continues. Again, no final determination of a suspected overpayment has been made. It is Gambro's intent to fully cooperate with the carrier and to undertake a thorough internal review of the laboratory's billing practices, and, to the extent necessary, take any corrective action to ensure the integrity of its Medicare billings. The Medicare revenues of the laboratories account for less than 2% of Gambro's consolidated revenues. For further information: Tim Schoenberg, VP Corp. Comm. Gambro Healthcare, phone +1-303-232 6800 Bengt Modéer, Senior VP, Corporate Communications, GAMBRO AB, phone +46-8-613 65 00, +46-70-513 65 33 Gambro is an international medical-technology group with revenues of approximately SEK 18 billion and about 17,000 employees in some 40 countries.