Monday, September 08, 2014
DOJ Files Suit Alleging Reliance Medical Systems Paid Kickbacks through Physician-Owned Distributors
The Department of Justice announced that it had filed its own complaint in a whistleblower lawsuit alleging that Reliance Medical Systems, a spinal implant company, set up physician-owned distributorships in order to funnel payments to physicians who were using the company’s surgical implants. According to the government’s complaint, Reliance allowed physicians who were using the company’s devices to acquire ownership shares in distributorships it owned. Physicians allegedly ordered Reliance implants for their patients through the distributorships they partly owned. One doctor, who was named as a defendant in the government’s complaint, allegedly received more than $400,000 over two years through the distributorship.
Read the DOJ press release, “United States Pursues Claims Against Neurosurgeon, Spinal Implant Company, Physician-Owned Distributorships and Their Non-Physician Owners for Alleged Kickbacks and Medically Unnecessary Surgeries"
Posted by eithurburn on 09/08 at 11:56 AM
Friday, September 05, 2014
Two Skilled Nursing Companies Pay $3.75 Million for Unnecessary Rehab Services
Two companies, Life Care Services (LCS) and ParkVista, have agreed to pay $3.75 million in connection with rehabilitation services provided in their skilled nursing facilities. According to the government, both companies hired RehabCare to provide rehabilitation therapy services to their patients. RehabTherapy allegedly provided unreasonable and unnecessary therapy, which increased the reimbursement LCS and ParkVista received. Additionally, to maximize reimbursement to LCS and ParkVista, RehabCare allegedly enrolled patients in the maximum level of therapy (also the costliest) and ensured that its staff provided only the minimum duration of therapy necessary to meet billing requirements, regardless of patients’ individual needs.
Read the DOJ press release, “Two Companies to Pay $3.75 Million for Allegedly Causing Submission of Claims for Unreasonable or Unnecessary Rehabilitation Therapy at Skilled Nursing Facilities"
Posted by eithurburn on 09/05 at 10:44 AM
Friday, August 29, 2014
Spine 360 and Spinal Surgeon to Pay $2.6 Million for Kickbacks
A surgical device manufacturer and a spinal surgeon have agreed to pay $2.6 million to settle allegations under the False Claims Act that the company paid kickbacks to the surgeon in order to get him to use their products. According to the Department of Justice, Spine 360 made sham payments to an entity controlled by Dr. Jamie Gottlieb, purportedly for intellectual property agreements. The government alleged that the payments were in fact intended to induce Dr. Gottlieb to continue to use Spine 360’s device in his spinal surgeries.
Read the DOJ press release, “Manufacturer of Spinal Devices and Surgeon to Pay United States $2.6 Million to Settle Alleged Kickback Scheme"
Posted by eithurburn on 08/29 at 10:30 AM
SEC Issues $300,000 to Whistleblower in Audit & Compliance Role
The steady stream of SEC whistleblower awards continues, as the SEC has paid $300,000 to its tenth whistleblower. The individual, whose anonymity has been preserved, is the first whistleblower to receive an award for providing information gained while working in an audit and compliance capacity. Under the SEC whistleblower statute, in order for an individual with audit and compliance functions to be considered a proper whistleblower, they must first report internally and allow the company 120 days to take action on the information. In this instance, the whistleblower reported information internally, and provided information to the SEC only after his or her company failed to remedy the situation. The whistleblower was awarded 20% of any recoveries the SEC obtains.
Read the SEC Press Release, “SEC Announces $300,000 Whistleblower Award to Audit and Compliance Professional Who Reported Company’s Wrongdoing"
Read the SEC order
Posted by eithurburn on 08/29 at 09:25 AM
Friday, August 08, 2014
McKesson to Pay $18 Million for Poor Vaccine Shipping Controls
McKesson Corporation agreed to pay $18 million to settle allegations that it shipped vaccines for the CDC without proper temperature controls. McKesson has a contract with the CDC to ship vaccines that the agency purchases from vaccine manufacturers to health care providers. Although the shipments were supposed to be electronically monitored to ensure that the temperature stayed within a specified range, McKesson failed to properly set the monitors. The DOJ emphasized that the failure to adhere to such terms “not only hurts taxpayers but also could jeopardize the integrity of products, like vaccines, that Americans count on to be safe.” The CDC, however, assured the public that vaccines, like those shipped by McKesson, are protected by multiple, redundant measures to ensure their safety and efficacy.
The case was initiated by Terrell Fox, a former finance director at McKesson Specialty Distribution LLC. Mr. Fox will receive a portion of the settlement as an award for bringing the case to the government’s attention.
Read the entire DOJ press release, “McKesson Corp. to Pay $18 Million to Resolve False Claims Allegations Related to Shipping Services Provided Under Centers for Disease Control Vaccine Distribution Contract"
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Posted by eithurburn on 08/08 at 03:21 PM