(www.mysanantonio.com) The company, which has been mired in bankruptcy and in a Justice Department investigation believed to be related to Medicare and Medicaid fraud, said it was "furloughing" management and staff. Medicare has accounted for about three-quarters of the Scooter Store's business, a company representative told a U.S. Senate committee last year. In its statement, the Scooter Store said it received two letters from the Centers for Medicare & Medicaid Services (CMS) on Thursday. In the other letter, the Scooter Store learned CMS wouldn't execute contracts with the company for a second round of competitive bidding. The company agreed to repay $19.5 million after the Office of Inspector General of the U.S. Department of Health and Human Services threatened to exclude it from federal health care programs. The OIG found the Scooter Store's failure to refund the overpayments breached the terms of a 2007 �corporate integrity agreement� the company entered into to settle charges that it made false Medicare claims and defrauded the government. In its statement, the Scooter Store said CMS's action �effectively eliminates� the company's ability to achieve a sale of its assets in a Chapter 11 reorganization.

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