Navigation Links
Heart Device Manufacturer in Minnesota and Hospitals in Ohio & Kentucky to Pay Nearly $4 Million to Resolve Fraud Allegations
Date:6/4/2010

WASHINGTON, June 4 /PRNewswire-USNewswire/ -- St. Jude Medical Inc., a heart device manufacturer; Parma Community General Hospital; and Norton Healthcare have paid the United States $3,898,300 to resolve false claim allegations that St. Jude paid illegal kickbacks to two hospitals to secure heart-device business, the Justice Department announced today. The government alleges the kickbacks caused false claims to be submitted to federal health care programs in violation of the False Claims Act. The kickbacks included alleged rebates that were "retroactive" and paid based on a hospital's previous purchases of St. Jude heart-device equipment and rebates that St. Jude paid for purchases of heart-device equipment sold by its competitors to induce purchases of similar equipment from St. Jude in the future.

Under the terms of the settlement, St. Jude, headquartered in St. Paul, Minn., will pay $3,725,000. Parma Community General Hospital, located in Parma, Ohio, is paying $40,000, and Norton Healthcare in Louisville, Ky., is paying $133,300. The government asserted that Parma and Norton were recipients of improper rebates from St. Jude.

"Hospitals should base their purchasing decisions on what is in the best interests of their patients," said Tony West, Assistant Attorney General for the Civil Division of the Department of Justice. "We will act aggressively to ensure that choices about health care are not tainted by illegal kickbacks."

This action was initiated by the filing of an action under the False Claims Act by Jerry Hudson. Under the qui tam, or whistleblower, provisions of the Act, private citizens may bring lawsuits on behalf of the United States and share in any recovery. Mr. Hudson's share of the settlement announced today will be $640,050.

"The Department of Justice is committed to requiring that federal healthcare monies are properly spent," said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio. "This case illustrates the necessity of oversight of federal health care programs in the United States."

The settlement was the result of an investigation by the Justice Department's Civil Division, the U.S. Attorney's Office for the Northern District of Ohio, the Office of Inspector General at the U.S. Department of Health and Human Services, and the FBI.

This settlement is part of the government's emphasis on combating health care fraud. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover approximately $3.0 billion since January 2009 in cases involving fraud against federal health care programs.


'/>"/>
SOURCE U.S. Department of Justice
Copyright©2010 PR Newswire.
All rights reserved

Related medicine technology :

1. Health Network Laboratories (HNL) Enters Into License Agreement With Hunter Laboratories to Provide HunterHeart Cardiovascular Disease Management Program.
2. Abbotts Investigational MitraClip(R) System Demonstrates Strong Safety Results and Improved Clinical Outcomes for Common Causes of Leaky Heart Valves
3. HeartSine Technologies Supports Living for Zachary Benefit Golf Tournament
4. Large Meta-Analysis Further Validates Benefit of Measuring Lp-PLA2 for Coronary Heart Disease and Ischemic Stroke Risk Assessment
5. Women Clear Winners with Heart Failure Device
6. HeartSine Technologies Supports Run For Sarah Benefit Event
7. Motorcyclist Volunteers Come to the Rescue With HeartSine AEDs
8. WorldHeart Appoints Dr. John Campbell Woodard as Senior Vice President of Scientific Affairs
9. Awarepoint Announces Management Restructuring and the Opening of Its New Headquarters in the Heart of Downtown San Diego
10. Study Shows Superior Efficacy for TAXUS(R) Express(R) Stents at One Year Compared to Bare-Metal Stents in Diabetic Patients Experiencing Heart Attack
11. Atherotech Recruits Top Experts in Fight Against Heart Disease
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:2/11/2016)... , Feb. 11, 2016 Potrero Medical, Inc., the ... to announce the appointment of George M. Rapier, III ... San Antonio, TX , WellMed is one of the ... patients and HMO members in Texas ... 1990 out of his own internal medicine practice, he has ...
(Date:2/11/2016)...  MiMedx Group, Inc. (NASDAQ: MDXG ), the ... other birth tissues, human skin and bone, and patent-protected ... products and therapies, announced today that it will present ... in New York , NY.  Parker ... Senken , Chief Financial Officer and Chris Cashman ...
(Date:2/11/2016)... , Feb. 11, 2016  AfterPill.com is reporting ... recommend alcohol abstinence for all women who are at ... the U.S. each year and raises the risks of ... --> According to the Guttmacher Institute, ... of women of child-bearing age, who have sex without ...
Breaking Medicine Technology:
(Date:2/13/2016)... Coral Springs, FL (PRWEB) , ... February 13, 2016 , ... ... on the environmental impact of American businesses. , The increasingly modern world of ... rely more often on non-renewable energy sources such as oil and coal, which pollutes ...
(Date:2/13/2016)... Canada (PRWEB) , ... February 13, 2016 , ... In ... foot forward. They’ll groom themselves to perfection, go out of their way to be ... date – just take a look at any online dating profile. , A ...
(Date:2/12/2016)... ... February 12, 2016 , ... The law firm of Morrow, ... Parishes. The purpose of these scholarships is to encourage applicants to pursue a ... seek employment within these two parishes. , “We have available jobs in St. ...
(Date:2/12/2016)... Falls Church, VA (PRWEB) , ... February 12, ... ... in Store?, Feb. 29, 2016 — 1:30 p.m. – 3:00 p.m. EST, ... burner issue in the life cycle of pharmaceutical products, garnering increased attention from ...
(Date:2/12/2016)... ... February 12, 2016 , ... T.E.N., a technology and information ... ISE Southeast Awards 2016. Finalists and winners of the ISE® Awards for both ... and Awards Gala on March 15, 2016 at the Westin Peachtree Plaza, Atlanta. ...
Breaking Medicine News(10 mins):