A heart device manufacturer and two hospitals have paid the US nearly $4m to resolve false claim allegations, the US Justice Department reports.
It has been alleged that St. Jude Medical, the heart manufacturer, paid illegal kickbacks and rebates on purchases of its devices to Parma Community General Hospital in Ohio and Norton Healthcare in Kentucky, causing false claims to be submitted to federal healthcare programs.
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Under the terms of the settlement, St. Jude will pay $3,725,000, Parma Community General Hospital will pay $40,000 and Norton Healthcare will pay $133,300.
The settlement was decided after investigations by the Justice Department’s Civil Division, the US Attorney’s Office for the Northern District of Ohio, the Office of Inspector General at the US Department of Health and Human Services, and the FBI.
The Justice Department has used the False Claims Act to recover about $3bn since January 2009 in cases involving fraud against federal healthcare programs.
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