Johnson & Johnson’s DePuy Synthes has settled with federal prosecutors over allegations that it provided a Massachusetts-based surgeon with $100,000 worth of free products to win business.
As part of the $9.75 million settlement agreement, DePuy Synthes admitted that it provided free cages, rods, screws, plates and modular access and retraction systems to the surgeon from at least July 2013 through February 2018, the U.S. Attorney in Massachusetts announced in a news release today.
The surgeon used the ortho devices during more than 20 procedures in Bahrain, Saudi Arabia, Kuwait, Lebanon, the United Arab Emirates and Qatar. The DePuy products appear to have been advantageous because they were not always available.
Federal prosecutors claimed that the free products provided the surgeon an inducement to also use DePuy Synthes products during procedures in Massachusetts involving Medicare and Medicaid patients.
U.S. Attorney Rachael S. Rollins said in the news release that unlawful kickbacks could severely distort medical judgment as well as the market for medical devices. “The millions of patients that depend on our healthcare system deserve untainted medical decisions. This settlement reflects our commitment to stamping out illegal kickbacks.”
Joseph R. Bonavolonta, special agent in charge of the FBI’s Boston Division, said healthcare fraud costs taxpayers billions of dollars annually. “It is not a victimless crime, and this unscrupulous scheme orchestrated by DePuy is just one example of how the FBI and our partners are working hard every day to protect both patients and taxpayers.”
In a statement shared by a spokesperson, DePuy Synthes said it fully cooperated with the government throughout the investigation. It said the settlement recognized the cooperation. “This settlement avoids further lengthy legal processes. We are committed to ensuring our employees conduct business in a way that complies with our Credo and with all laws and regulations.”