Medtronic ’ s Covidien to pay $20m to settle ClosureFast kickback allegations

Medtronic‘s (NYSE:MDT) Covidien has agreed to pay approximately $20 million to resolve kickback allegations related to the sale and promotion of its ClosureFast radiofrequency ablation catheters. The Fridley, Minn.-based company agreed to pay approximately $17.5 million to the U.S. to settle alleged violations of the False Claims Act and an additional $1.5 million to California and $1 million to Florida for claims settled by state Medicaid programs, according to a U.S. Department of Justice release. “Today’s settlement serves as an important reminder to those in the health care community that unlawful kickbacks come in many forms and are not limited to monetary payments to providers. Providing free or discounted services to health care providers to induce the use of certain items or services can lead to excessive and unnecessary treatments, and drive up health care costs for everyone,” DoJ Civil Division Assistant Attorney General Jody Hunt said in a prepared statement. In the case, the DoJ alleged that Covidien illegally supplied practice development and market development support to healthcare providers in California and Florida to promote the use and purchasing of its ClosureFast radiofrequency ablation catheters. The allegations include claims that Covidien provided customized marketing plans, scheduled and conducted “lunch and learn” meetings and dinners and engaged in other free or discounted services to promote the use of its ClosureFast...
Source: Mass Device - Category: Medical Devices Authors: Tags: Business/Financial News Featured Legal News Covidien Medtronic Source Type: news