Federal prosecutors said last week that Spiracur agreed to pay $3 million to settle charges that it paid kickbacks to U.S. Veterans Affairs Dept. physicians in return for using the Snap negative pressure wound therapy it just sold to Acelity.
Sunnyvale, Calif.-based Spiracur admitted no wrongdoing in the settlement, but agreed to cooperate with the investigation of healthcare providers who received the alleged kickbacks, according to the U.S. Justice Dept.
Spiracur compensated VA podiatrists at 4 centers in Phoenix, Atlanta, San Francisco and Cleveland with gifts, “gratuities” and speaking fees, the Justice Dept. said. Between 2010 and 2015, those centers bought more than $3.3 million worth of Snap devices, prosecutors said.
Last week Spiracur agreed to sell the Snap line to Acelity for an undisclosed amount.