Arthrex Paying $16 Million to Resolve Kickback Case

Florida medical device company Arthrex has agreed to pay $16 million to resolve a whistleblower’s False Claims Act allegations that its payment of kickbacks to a Colorado orthopedic surgeon resulted in the submission of false Medicare claims. A Department of Justice statement says the settlement resolves allegations that the company provided remuneration to the surgeon in the form of royalty payments purportedly for the surgeon’s contributions to the company’s SutureBridge and SpeedBridge products. The statement says the payments were actually intended to induce the surgeon’s use and recommendation of Arthrex’ products.

Arthrex also entered into a five-year corporate integrity agreement with the HHS inspector general that establishes requirements for future compliance.

The department says the whistleblower will receive $2.5 million of the settlement funds.