Health Law Daily Wrap Up, ANTI-KICKBACK PROHIBITION—SETTLEMENT AGREEMENTS: Massachusetts doctor pays $200,000 to settle allegations of illegal kickbacks, (Jun 7, 2024)

By Patricia K. Ruiz, J.D.

The doctor received kickbacks worth more than $100,000 in exchange for using DePuy products in his surgeries.

A Massachusetts doctor agreed to pay $200,000 to resolve allegations that he received free products from DePuy Synthes, Inc., and DePuy Synthes Sales, Inc., (DePuy, collectively) in return for ordering DePuy products for use in his procedures, in violation of the Anti-Kickback Statute (AKS) and the False Claims Act (FCA). The doctor allegedly used the free products in surgeries he performed overseas (Settlement Agreement, May 29, 2024).

Admitted conduct. In the settlement agreement, the doctor admitted that, from at least July 2016 through February 2018, he received products worth more than $100,000 in total from DePuy, which he used in at least five spinal surgeries in countries including Saudi Arabia, Lebanon, and Qatar. The doctor further admitted that the products given to him were sometimes not available at the hospitals and/or with the third-party sales distributors in the countries where he operated overseas. He admitted that he never paid DePuy for the products he used overseas and continued to use DePuy products in spinal surgeries in Boston. In exchange for the products, the doctor ordered, arranged for, and recommended the purchase of DePuy’s products in spine surgeries he performed on Medicare and Medicaid patients in Massachusetts, seeking federal reimbursement for those surgeries.

Previously, DePuy, which manufactures and distributes medical devices, agreed to pay $9.75 million to resolve allegations related to its role in the conduct. DePuy admitted it never requested or received payment from the doctor, the hospitals or the third-party sales distributors in the countries where the doctor operated overseas.

Settlement agreement. Under the settlement agreement, the doctor will pay $200,000 to the U.S. and to the Commonwealth of Massachusetts, $100,000 of which is restitution. The doctor agreed not to charge unallowable costs directly or indirectly to pay any contracts with the U.S. or with any state Medicaid program, or seek payment for unallowable costs through any cost report, cost statement, information statement, or payment request submitted to the Medicare, Medicaid, TRICARE or FEHBP Programs.

Companies: DePuy Synthes, Inc.; DePuy Synthes Sales, Inc.

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