MassDevice

The Medical Device Business Journal — Medical Device News & Articles | MassDevice

Home » Feds: We got $119m in fraud penalties from medtech companies last year

Feds: We got $119m in fraud penalties from medtech companies last year

By

Feds: We got $119m in fraud penalties from medtech companies last year

Federal authorities say they penalized medical device companies to the tune of nearly $119 million for healthcare fraud during fiscal 2014, including the $30 million Boston Scientific (NYSE:BSX) paid to settle a False Claims Act case back in October 2013.

The haul was part of the $2.3 billion won or negotiated by the U.S. Justice Dept. and the Health & Human Services Dept. in healthcare fraud judgments and settlements during fiscal 2014, which ran from October 1, 2013, to September 30, 2014, according to the agencies’ annual report on their joint healthcare fraud and abuse prevention program.

The largest settlement of the $118.8 million-worth made by medtech companies last year was CareFusion‘s $40.1 million agreement to settle a 2-year federal investigation into the marketing of its ChloraPrep antiseptic skin preparation wipes, according to the report.

Boston Scientific’s $30 million deal to settle a FCA suit filed over pacemakers made by its star-crossed Guidant subsidiary was the next largest, followed by Sanofi (NYSE:SNY) subsidiary Genzyme’s plege to pay $22.3 million to settle a whistleblower lawsuit accusing the company of off-label marketing of its Seprafilm surgical product.

Last May Medtronic (NYSE:MDT) agreed to pay $9.9 million to settle a whistleblower’s lawsuit alleging that it ran a years-long kickbacks scheme to induce physicians to use its cardiac rhythm management devices. In August, Smith & Nephew (FTSE:SN, NYSE:SNN) said it would pay $8.3 million to settle a whistleblower’s lawsuit accusing it of passing off devices made in Malaysia as manufactured in the U.S.

Abbott (NYSE:ABT) agreed to pony up nearly $5.5 million last December to settle a class action lawsuit alleging a kickbacks scheme to push the use of its stent products. And Omni Surgical, doing business as Spine360, agreed along with an Indiana spine surgeon to cough up a total of $2.6 million to put to rest FCA allegations that the company dished out kickbacks to induce the doctor to use its products.

In case you missed it

RSS From Medical Design & Outsourcing

  • Versapor® RC Membranes: The next generation of venting materials
    As the world leader in the design and production of membranes, filtration devices, and separation systems, Pall Corporation supplies products to nearly every industry in the world. Founded in 1946, Pall Corporation has set the standard for filtration solutions for 75 years and counting. Our customers have relied on us for their most sophisticated applications… […]
  • Tips to help bring your medical device from mind to market
    By Bret Ludwig, Ph.D. Senior Product Development Specialist, 3M Medical Materials & Technologies Great medical devices start with an idea—a spark. And from there, it might move to the back of a napkin or a notepad. But as development continues, the process can get trickier and more complex. In fact, turning an idea into a… […]
  • Salt baths increase stability in the medical device tempering process
    Calibration baths, like salt baths, were originally for calibrating temperature assets. But there’s another use for them: manufacturing Nitinol medical devices. Travis Porter, Fluke Calibration Nitinol is a nickel-titanium alloy that exhibits both thermal shape memory behavior and super-elasticity. It’s a great metal to use in medical devices because it’s possible to set the wire… […]
  • Traco Power announces new TMW 24 and TMW 36 series
    Traco Power (San Jose, Calif.) recently announced the company’s new TMW series of 24- and 36-W power supplies. The new power supplies are IP68 rated and fully encapsulated — with flexible options for PCB or chassis mounting for the medical and industrial markets. The TMW Series were also designed for flush box-mounting to support IoT… […]
  • Protolabs reports mixed-bag results for Q2
    Protolabs (NYSE: PRLB) posted second-quarter earnings today that missed the consensus forecast on Wall Street, though the company beat on revenue. The Maple Plain, Minn–based digital manufacturing outsourcer — which serves medtech and a host of other industries — reported profits of $12.9 million, or 47¢ per share, on sales of $123.0 million for the… […]
  • Integer beats The Street in Q2, boosts sales outlook
    Integer Holdings (NYSE:ITGR) posted second-quarter results today that beat the consensus forecast on Wall Street — boosting its 2021 sales outlook amid continued recovery from the COVID-19 pandemic. The Plano, Texas–based medical device contract manufacturing giant reported profits of $29.4 million, or 89¢ per share, on sales of $312.0 million for the three months ended… […]
  • Keep the end in mind when choosing a medtech partner
    There are five general categories of medtech vendor partners. If the end is apparent in the beginning, the correct type of partner will be clearer. Jim Reed, Minnetronix Medical Stephen Covey gave the business world this mantra in one of his bestsellers: “Start with the end in mind.” Whether they didn’t read the book or… […]
  • Orthofix launches Fiberfuse Strip bone graft
    Orthofix (NSDQ:OFIX) today announced that it has launched its FiberFuse Strip bone graft in the U.S. Lewisville, Texas–based Orthofix designed the FiberFuse Strip to be a preformed bone-graft strip for posterior cervical, posterior lumbar and degenerative spinal procedures. FiberFuse Strip is 100% bone and has a unique mixture of mineralized cancellous and demineralized cortical bone with… […]
  • Thermo Fisher Scientific beats The Street in Q2 results
    Thermo Fisher Scientific (NYSE:TMO) today posted second-quarter results that beat the overall consensus on Wall Street. The Waltham, Mass.–based company reported profits of $1.8 billion, or $4.61 per share, on sales of $9.3 billion for the three months ended July 1, 2021, for a bottom-line gain of 58.1% on sales growth of 34.1% compared with… […]
  • Choosing the Right Rubber Material and Process for Your Medical Parts
    When it’s time to design and develop a new medical device that calls for an elastomer component, there are a number of material options and manufacturing processes to consider. The long list of material properties impacting performance includes your prospective polymer’s end-use environment, chemical compatibility, hardness, compression set, tensile properties and manufacturability — to name… […]
  • 3M’s healthcare segment registers growth in Street-beating Q2
    3M (NYSE:MMM) reported second-quarter results that beat the consensus forecast — with the company’s healthcare segment showing especially robust growth. The St. Paul, Minn.–based company posted profits of $1.5 billion, or $2.59 per share, on sales of $9 billion for the three months ended June 30, 2021, for a 16.7% bottom-line gain on sales growth of… […]

Leave a Reply