False Claims Act Used in Off-Label Cases: Attorney
Attorney Keeley McCarty (SheppardMullin) says medical device manufacturers should be aware that the federal government is using False Claims Act prosecution to target manufacturers for off-label use of their devices, even where healthcare providers have decided the use is safe and effective. Writing in an online post, McCarty cites the recent case of United States v. Prometheus Group, et al.
In that case, she says, the government alleges that the company trained providers to re-use disposable rectal probes against FDA recommendations, causing the providers to submit false claims to Medicare for the services misusing the probes.
“The message to medical device manufacturers is clear: even without submitting claims to the government themselves, manufacturers can face False Claims Act liability for suggesting providers use their devices in any way FDA has not approved (and in this case, warned against),” McCarty writes.
The post also cites a 2018 case in which AngioDynamics settled for $12.5 million and says that some of the largest False Claims Act settlements have been with drug companies for promoting off-label use of their drugs.
Saying that all hope is not lost for manufacturers, McCarty also references a recent 9th Circuit Court of Appeals decision that declined to penalize Medtronic for marketing its products for a use that FDA expressly contraindicated on the labeling. The court found that Medicare does not distinguish between on-label and off-label uses in determining whether to pay claims and that even contraindicated uses are eligible for payment if they are medically necessary and reasonable.