PHILADELPHIA, PA — Federal prosecutors have reached a $1 million settlement with Scottie Girl, LLC — better known as The Breastfeeding Shop — and its owner, Patricia Gatter, resolving allegations that the Emmaus-based supplier improperly inflated costs and submitted false claims to TRICARE, the military’s worldwide health care program.
U.S. Attorney David Metcalf announced the agreement on Thursday, marking a decisive federal response to what investigators described as years of improper billing practices tied to breast pumps and related equipment provided to military service members, retirees, and their families.
According to the allegations, The Breastfeeding Shop billed TRICARE hundreds of dollars more per breast pump than it charged Pennsylvania’s Medicaid program, a practice the government says amounted to an unlawful dual fee schedule. Prosecutors also claimed the company “unbundled” pre-packaged breast pump accessories — billing TRICARE separately for items already included in standard kits.
“Durable medical equipment suppliers play a vital role in providing safe and effective medical products to patients in need, and especially to our brave service members and their families,” Metcalf said. “As alleged, The Breastfeeding Shop and Gatter prioritized their own financial interests through a billing scheme that was to the detriment of the government. This conduct will not be tolerated by my office.”
The settlement covers alleged misconduct from the early rollout of TRICARE’s 2015 benefit expansion, which began covering breast pumps and supplies for nursing mothers. Federal officials said the improper billing inflated costs at a time when the program was working to expand access to essential equipment for new military parents.
Christopher M. Silvestro, Acting Special Agent in Charge of the Defense Criminal Investigative Service Northeast Field Office, said the agreement reflects years of cooperation between the Department of Defense Office of Inspector General and the Justice Department.
“Fraud involving TRICARE, the healthcare system for military members and their families, is something we take seriously and will investigate fully,” Silvestro said.
Dr. Glen Diehl, Acting Deputy Director of the Defense Health Agency, said safeguarding the program’s integrity is central to protecting service members, veterans, and their families.
“This settlement sends a clear message that we will not tolerate practices that exploit the program and inflate costs at the expense of our service members, veterans, and their families,” Diehl said. “Access to essential medical equipment, like breast pumps, is vital for the health and well-being of new mothers and infants within our TRICARE community.”
The investigation was led by the Defense Criminal Investigative Service, with the case handled by Assistant U.S. Attorney Judith Amorosa and former Auditor Dawn Wiggins of the Eastern District of Pennsylvania.
Federal officials emphasized that the settlement resolves allegations only, and no determination of liability has been made.
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