Medtronic Pays $8.1 Million to Settle Kickback Charges
Medtronic has agreed to pay $8.1 million to resolve allegations that it violated the False Claims Act by paying kickbacks to induce a South Dakota neurosurgeon to use certain Medtronic products. The company also agreed to pay an additional $1.11 million to resolve allegations that it violated the Open Payments Program by failing to accurately report payments it made to the neurosurgeon to the Centers for Medicare & Medicaid Services, according to a Department of Justice release.
The government says the settlement resolves allegations that Medtronic agreed to requests made by neurosurgeon Wilson Asfora to pay for social events at Carnaval Brazilian Grill, a restaurant Medtronic knew he owned. “Medtronic allegedly made the payments to benefit Asfora and induce him to use Medtronic’s SynchroMed II intrathecal infusion pumps, which are implantable devices used to deliver medication to patients,” it contends. Over a nine-year period, Medtronic allegedly paid for more than 100 events at the restaurant.