Merit Medical Paying $18 Million to Resolve Kickback Case

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The Justice Department says Merit Medical Systems, South Jordan, UT, has agreed to pay $18 million to resolve allegations that it caused the submission of false claims to government healthcare programs by paying kickbacks to doctors and hospitals to induce use of its products. A department statement says the company provided millions of dollars of advertising and other marketing support to healthcare providers to induce the sale of its products.

The statement says that while Merit said its Local Advertising Program was designed to increase awareness of medical treatments, it allegedly assisted only selected providers to reward past sales, induce future sales, and steer business to the company and away from its competitors.

The government says that Merit disregarded numerous warnings that its conduct could violate the anti-kickback statute, including warnings from its former chief compliance officer. The officer filed a whistleblower complaint and will receive $2.65 million from the settlement.

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