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# Patient Service Inc. Settles Kickback Case for $3 Million
- URL: https://www.fdaweb.com/patient-service-inc-settles-kickback-case-for-3-million/
- Published: 2020-01-22T12:00:00.000Z
- Updated: 2026-09-14T15:59:32.000Z
- Author: David McFarland
- Tags: Drugs, FDA Policy/General, #legacy-id-D5145903

The Justice Department says that Patient Services Inc. (PSI) a foundation based in Virginia, has agreed to pay $3 million to resolve allegations that it violated the False Claims Act by acting as a conduit through which some drug companies could provide kickbacks to Medicare patients taking the companies’ drugs by paying the patients’ copayments. A department [statement](https://click.connect.hhs.gov/?qs=c5ffdcd9ab10a08b32ab2d9befccd08d5e4c60e52c516d2afe8d19df527b7b15cc3248f32a9e1bf04668eefd526905a8192c4fa552b5e219&ref=fdaweb.com) says the government alleged that PSI coordinated with Insys, Aegerion, and Alexion to enable them to pay kickbacks to Medicare patients taking their drugs. PSI allegedly worked with the companies to design and operate funds that channeled money from the companies to patients taking the specific drugs the companies sold.

“These schemes allegedly minimized the possibility that the companies’ contributions to the funds would go to patients taking competing drugs made by other companies and undermined the nature of these contributions as bona fide donations,” the department says. The government previously entered into settlement agreements with each of the companies covering their use of PSI as a conduit to pay their patients’ copays.

PSI has agreed to a three-year HHS integrity agreement as part of the settlement, the department says. It also says the amount of the settlement was based on a determination of how much the company could afford to pay.