Biotronik Pays $13 Million Under False Claims Case

Share

Medical device maker Biotronik has agreed to pay $13 million to resolve allegations that it violated the False Claims Act by causing false claims to be submitted to Medicare and Medicaid by paying kickbacks to physicians to induce their use of the companys’s implantable cardiac devices, such as pacemakers and defibrillators. “Kickbacks to doctors are illegal because they impose hidden costs on the health care system and they taint the doctor-patient relationship,” the government says in a release.

The company, according to the government, abused a new employee training program by paying physicians for an excessive number of trainings and, in some cases, for training events that either never occurred or were of little or no value to trainees. “Biotronik allegedly made these payments despite concerns raised by its own compliance department, which warned that salespeople had too much influence in selecting physicians to conduct new employee training and that the training payments were being over-utilized,” it contends. The settlement also resolves allegations that Biotronik violated the Anti-Kickback Statute when it paid for physicians’ holiday parties, winery tours, lavish meals with no legitimate business purpose and international business class airfare and honoraria in exchange for making brief appearances at international conferences.

Read more