Justice Dept. Sues SpineFrontier Over Kickbacks

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The Justice Department has filed two False Claims Act lawsuits against SpineFrontier and related entities and executives, alleging that the company paid kickbacks to spine surgeons to induce the use of SpineFrontier surgical devices, which is in violation of the Anti-Kickback Statute. According to the complaint, defendants paid spine surgeons over $8 million in sham “consulting” payments for “product evaluations,” when actually the payments were for using company devices.

 

The government contends that the company generally paid “consulting” spine surgeons $500 for a cervical procedure, and $1,000 for a lumbar procedure as long as they used SpineFrontier devices. It alleges that consulting surgeons often performed little or no work beyond implanting the devices, which they were paid separately by insurers.

 

The lawsuits were originally filed under the whistleblower provisions of the False Claims Act by Charles Birchall, Jr., a former employee of a SpineFrontier, former company sales manager John Miller, and former sales rep Walter Bennett.

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