Navigation Links
Medtronic Spine, Formerly Kyphon Inc., to Pay U.S. $75 Million to Resolve Allegations Of Defrauding Medicare

WASHINGTON, May 22 /PRNewswire-USNewswire/ -- Medtronic Spine LLC, the corporate successor to Kyphon Inc., has agreed to pay the United States $75 million to settle allegations that it caused the submission of false claims to Medicare, the Justice Department announced today. The government alleged that Kyphon caused the submission of fraudulent claims for its kyphoplasty procedure, which is a minimally-invasive surgery used to treat compression fractures of the spine caused by osteoporosis, cancer or benign lesions.

The United States alleged that Kyphon engaged in a seven-year marketing scheme that resulted in certain hospitals billing Medicare for certain kyphoplasties performed on an inpatient basis rather than less costly and clinically appropriate outpatient kyphoplasty treatment. This conduct resulted in the Medicare program paying more for certain inpatient kyphoplasty procedures.

"Today's settlement demonstrates our commitment to ensure that the Medicare Trust Fund is used to pay for necessary medical care and is not depleted as a result of aggressive marketing schemes intended to increase sales of unnecessary devices or procedures," said Gregory G. Katsas, acting Assistant Attorney General of the Justice Department's Civil Division.

This civil settlement resolves allegations against Kyphon that were filed in Buffalo, N.Y., by two former employees of Kyphon. Their action was filed under the qui tam provisions of the federal False Claims Act, which permits private citizens to bring lawsuits on behalf of the United States and receive a portion of the proceeds of a settlement or judgment awarded against a defendant. The private citizens in this action will receive a total of $14.9 million as their statutory share of the proceeds of this settlement.

"The settlement further demonstrates the private-public partnership fostered through the False Claims Act involving whistleblowers working with the United States continues to result in the identification of waste, fraud, and abuse and the significant return to the taxpayers of ill-gotten gains," said Terrance P. Flynn, U.S. Attorney for the Western District of New York.

In conjunction with the $75 million settlement, Kyphon has entered into a Corporate Integrity Agreement with the U.S. Department of Health and Human Services, Office of Inspector General. The Corporate Integrity Agreement contains measures to ensure compliance with Medicare regulations and policies in the future.

"Those who are complicit in causing the Medicare program to pay out unnecessary dollars will be pursued by OIG and our law enforcement partners," said Daniel R. Levinson, Inspector General of the Department of Health and Human Services. "This $75 million settlement restores much-needed funding to the Medicare Trust Fund, as well as protecting the integrity of the program and its beneficiaries."

The settlement with Medtronic Spine LLC was the result of a coordinated effort among the Commercial Litigation Branch of the Justice Department's Civil Division; the U.S. Attorney's Office for the Western District of New York in Buffalo, Affirmative Civil Enforcement Unit; and the Department of Health and Human Services' Office of Inspector General and Office of Counsel to the Inspector General.

SOURCE U.S. Department of Justice
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. Shareholder Class Action Filed Against Medtronic, Inc. by The Law Firm of Schiffrin Barroway Topaz & Kessler, LLP
2. Supreme Court Hears Case on Federal Pre-emption of Safety Standards for Medical Technologies (Riegel v. Medtronic, Inc.)
3. Medtronic Mediterranean Launches Worlds First Arabic-Language Integrated Insulin Therapy for Improved Diabetes Management
4. Wolf Popper Announces Filing of Securities Class Action Lawsuit Against Medtronic Inc. - MDT
5. Another Medtronic Sprint Fidelis Lead Lawsuit is Filed in Federal District Court
6. Medtronic Sprint Fidelis Defibrillator Lead Lawsuit Claims Center Opens to Aid Victims
7. Amicus Brief Filed with U.S. Supreme Court in Riegel v. Medtronic, Inc.
8. The Law Offices of John David Hart: Texas Man Sues Medtronic in Body-Snatching Case
9. Kyphon Announces Special Meeting Date to Vote on Proposed Medtronic Merger
10. RSB Spine, LLC Announces FDA Clearance of New InterPlate(TM) Indications
11. Formerly Conjoined Twins Leave Packard Childrens Hospital; Heading Home to Costa Rica
Post Your Comments:
(Date:6/26/2016)... (PRWEB) , ... June 26, 2016 , ... On June ... sponsor of the 2016 Cereal Festival and World’s Longest Breakfast Table in Battle Creek, ... of the city’s history as home to some of the world’s leading providers of ...
(Date:6/26/2016)... ... ... blind and certified personal trainer is helping to develop a weight loss fitness plan that ... the two major problems leading the fitness industry today:, , All ... They don’t eliminate all the reasons people quit their exercise program , ...
(Date:6/25/2016)... , ... June 25, 2016 , ... Austin residents seeking ... American College of Mohs Surgery and to Dr. Russell Peckham for medical and surgical ... effective treatment for skin cancer. The selective fellowship in Mohs Micrographic Surgery completed by ...
(Date:6/25/2016)... ... 25, 2016 , ... First Choice Emergency Room , the largest network ... the Medical Director of its new Mesquite-Samuell Farm facility. , “We are pleased ... location,” said Dr. James M. Muzzarelli, Executive Medical Director of First Choice Emergency Room. ...
(Date:6/25/2016)... ... , ... On Friday, June 10, Van Mitchell, Secretary of the Maryland Department ... in recognition of their exemplary accomplishments in worksite health promotion. , The Wellness at ... Wellness Symposium at the BWI Marriott in Linthicum Heights. iHire was one of 42 ...
Breaking Medicine News(10 mins):
(Date:6/24/2016)...  Collagen Matrix, Inc., ("Collagen Matrix") the driving ... collagen and mineral based medical devices for tissue ... Messer has joined the company as Vice ... growing portfolio of oral surgery, neurosurgery, orthopaedic and ... the Collagen Matrix executive team as an accomplished ...
(Date:6/24/2016)... , June 24, 2016   Bay ... Rehabilitation Network,s Dean Center for Tick Borne ... Medicine and Rehabilitation, MIT Hacking Medicine, University of ... Innovation, today announced the five finalists of ... Lyme disease.  More than 100 scientists, clinicians, researchers, ...
(Date:6/24/2016)... , June 24, 2016 ... of the "Structural Electronics 2015-2025: Applications, Technologies, ... In-Mold Electronics, Smart Skin, ... Photovoltaics Structural electronics involves electronic ... load-bearing, protective structures, replacing dumb structures such as ...
Breaking Medicine Technology: