Navigation Links
Bayer Healthcare to Pay U.S. $97.5 Million to Settle Allegations of Paying Kickbacks to Diabetic Suppliers
Date:11/25/2008

WASHINGTON, Nov. 25 /PRNewswire-USNewswire/ -- Bayer HealthCare LLC (Bayer) has agreed to pay the United States$97.5 million plus interest to settle allegations that it paid kickbacks to a number of diabetic suppliers and caused those suppliers to submit false claims to Medicare, the Justice Department announced today. The settlement resolves allegations that Bayer engaged in a cash-for-patient scheme through which the company paid 11 diabetic suppliers to convert their patients to Bayer's products from supplies manufactured by its competitors.

The Tarrytown, N.Y.-based company manufactures diabetic self-testing supplies, including glucose monitors and testing strips. Bayer contracts with direct-to-patient diabetic suppliers who market and sell these products to beneficiaries and submit claims for reimbursement to Medicare.

Between 1998 and 2002, Bayer allegedly paid Liberty Medical Supply Inc., one of the largest direct-to-patient diabetic suppliers, approximately $2.5 million to convert its patients to Bayer supplies. The alleged kickbacks were based on the number of patients that Liberty successfully converted to Bayer supplies and were disguised as payments for advertising. In addition, Bayer allegedly paid kickbacks of approximately $375,000 to 10 other diabetic suppliers to convert patients to Bayer supplies.

"If medical device manufacturers want to serve Medicare beneficiaries they must follow the law," said Gregory G. Katsas, Assistant Attorney General for the Civil Division. "Paying healthcare suppliers to place a particular brand of device with Medicare beneficiaries violates the law and will not be tolerated."

The settlement resolves claims submitted to Medicare by the 11 suppliers for Bayer supplies from 1998 through 2007. Under the terms of the settlement, Bayer agreed to enter into a corporate integrity agreement with the Office of Inspector General for the Department of Health and Human Services (HHS).

"Device manufacturers who pay illegal kickbacks should expect to be held accountable," said Daniel R. Levinson, HHS Inspector General. "OIG's compliance agreement with Bayer includes specific requirements for the board of directors and management that will enable OIG to closely monitor company practices affecting Federal health care programs and beneficiaries."

The investigation was referred to the Justice Department's Civil Division, Commercial Litigation Branch, by the FBI and the Criminal Division of the U.S. Attorney's Office for the Southern District of Florida, in West Palm Beach, Fla.


'/>"/>
SOURCE U.S. Department of Justice
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. Bayer HealthCare Donates Hundreds of Food Items to Community Food Bank of New Jersey in Response to Governors Plea to Help the States Population in Need
2. Hagens Berman Files Class Action Against Bayer Healthcare Over Misleading Marketing Campaign
3. Bayer Diabetes Care Names Walk In Nicks Shoes (W.I.N.S.) Sweepstakes Grand Prize Winners
4. Bayer Marketing Two Unapproved Aspirin Products: FDA
5. Bayer and Onyx Launch Educational Program to Raise Awareness About Liver Cancer and Its Risk Factors
6. Bayer Diabetes Care Partners with Nick Jonas to Encourage Young People to Proactively Manage Their Diabetes
7. Photos: Bayer Names New U.S. CEO
8. Bayer USA Foundation Supports Summer Science Education Programs in Pittsburgh, Raleigh, Houston and Tyler, Texas
9. Barr and Bayer Sign Supply and Licensing Agreements for Launch of Generic Yasmin(R) and Yaz(R) Oral Contraceptives
10. Statement From Bayer(R) Aspirin Regarding the American Medical Associations New Aspirin Policy Resolution
11. Bayer Announces Availability of Reformulated Liquid Leukine(R)
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:4/28/2017)... ... , ... The Texas Cord Blood Bank (TCBB), a program of nonprofit biomedical ... Women’s Hospital at Renaissance in Edinburg for their outstanding efforts in collecting umbilical cord ... donate. , “Women’s Hospital at Renaissance has been a collection partner for the ...
(Date:4/28/2017)... Boston, MA (PRWEB) , ... April 28, 2017 , ... ... just for older people. “Wearing a hearing aid doesn’t have the stigma it had ... Speech-Language & Hearing Associates of Greater Boston, in a NALA North American Speaker ...
(Date:4/28/2017)... ... April 28, 2017 , ... Researchers at Moffitt ... ActiGraph’s CentrePoint Data Hub in a sample of participants enrolled in an ... and sleep monitoring solutions for the global scientific community. The company’s new CentrePoint ...
(Date:4/28/2017)... ... April 28, 2017 , ... Woolsy Corporation Limited, ... through its Nova Skin Sciences division, recently announced the launch of Allumière Antiaging ... the power of an anti-aging concentrate. , Anogeissus Leiocarpa Bark Extract ...
(Date:4/28/2017)... ... 28, 2017 , ... Semrock’s highly popular SearchLight Spectra Viewer ... resource for fluorescence microscopists and optical system designers, enabling The Right Solution, Right ... the globe, SearchLight has become a tremendously popular tool for the fluorescence imaging ...
Breaking Medicine News(10 mins):
(Date:4/20/2017)... Research and Markets has announced the ... Market Analysis By Service (Manufacturing, Research), By Country, (Brazil, Mexico, ... report to their offering. ... The Latin American pharmaceutical contract manufacturing services market ... Low drug registration cost in Latin American countries and ...
(Date:4/19/2017)... YORK , April 19, 2017 Global ... drainage devices are tubes used to remove excess liquid ... blood, serum, pus, urine, bile or lymph. Surgical drains ... of surgery such as orthopedics surgery, cardiovascular surgery, neurosurgery, ... is prophylactic post-surgery to prevent accumulation of fluid e.g. ...
(Date:4/19/2017)... -- Companion animal vaccines are ... such as canine, avian and feline. ... as Attenuated Live Vaccines, Conjugate Vaccines, Inactivated Vaccines, ... Vaccines. Attenuated live vaccines are derived from disease-causing ... been weakend under laboratory conditions. Conjugate vaccines are ...
Breaking Medicine Technology: