Respironics Troubles Broaden as it Pays $24 Mil. Over False Claims

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As Philips negotiates a consent decree with the Department of Justice (DoJ) acting for FDA over GMP issues with its troubled Respironics unit and its ventilators, continuous positive airway pressure (CPAP) and bilevel positive airway pressure (BiPAP) machines (see earlier story) , DoJ 9/1 says the company has agreed to pay over $24 million to resolve False Claims Act allegations that it misled federal health care programs by paying kickbacks to medical equipment suppliers.

The DoJ settlement resolves allegations that the company caused medical equipment suppliers to submit claims for ventilators, oxygen concentrators, CPAP and BiPAP machines, and other respiratory-related medical equipment that were false because Respironics provided illegal inducements to the suppliers. “Respironics allegedly gave the [medical equipment] suppliers physician prescribing data free of charge that could assist their marketing efforts to physicians,” the government contends.    

News of the Justice Department’s consent decree talks comes a few months after FDA issued a rare Section 518(a) notification order (see story) to Philips requiring it to notify patients and others of the company’s 6/14/2021 recall of the ventilators, CPAP and BiPAP machines, and the “unreasonable risk of substantial harm to the public health posed by the degradation of the polyester-based polyurethane sound abatement foam used in those products.” The notification order was necessary due to what the agency described as “inadequate” company notification efforts to date.

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