More hospitals settle Medtronic's Kyphon Medicare fraud cases

July 2, 2013 by Brad Perriello

Fifty-five hospitals across the country agree to pony up a total of $34 million to settle allegations that they bilked Medicare by keeping patients overnight for Medtronic's outpatient kyphoplasty spine procedure.

More hospitals settle over Kyphon Medicare fraud accusations

Some 55 U.S. hospitals agreed to pay a total of $34 million to settle U.S. Justice Dept. charges that they overcharged Medicare for Medtronic's (NYSE:MDT)'s kyphoplasty spine procedure, acquired in the $3.9 billion buyout of Kyphon in 2007, the Justice Dept. said today.

That takes the total settlement amount to $75 million from more than 100 hospitals, plus the $75 million Fridley, Minn.-based Medtronic paid to settle its end of the case in 2008, the government said.

All but 4 of the hospitals in the latest settlement were part of a whistleblower lawsuit filed by former Kyphon employees, who are in line for about $5.5 million from the settlement, according to the Justice Dept.

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Since January 2009, the feds have recovered more than $14.7 billion in False Claims Act cases, according to a press release.

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