U.S. Justice Dept. (DOJ)
$350M Medicare bust sets new record for a single offender
Texas physician Dr. Jacques Roy, 54, set a U.S. Justice Dept. record when he was arrested for allegedly bilking $375 million in fraudulent payments from government health programs over 5 years.
Roy was indicted alongside 5 owners of home health agencies in the Dallas area, who were arrested on charges of conspiracy to commit health care fraud. Roy owned and operated Medistat Group Associates, a home health care certification practice that had more purported patients than any other medical practice in the U.S., according to the DOJ.
Recent FCPA prosecutions an ominous trend for med-tech? | Legal News
Medical device makers with overseas operations may have to tread more carefully in light of a recent Justice Dept. decision to ding British orthopedic titan Smith & Nephew (NYSE:SNN) for $22 million to settle bribery charges.
Beyond the stiff penalty, the decision may also represent a shift in the way the SEC and DOJ view government entities in foreign countries, according to the American Health Lawyers Assn.
Weight loss: Clinics halt Lap-Band surgeries amid controversy | MassDevice.com On Call
MASSDEVICE ON CALL — A pair of outpatient clinics in Los Angeles stopped offering weight-loss surgeries using the Lap-Band gastrointestinal device amid ongoing controversy over a marketing campaign.
The FDA late last year issued warning letters to 8 California surgical centers and the marketing firm 1-800-GET-THIN, citing them for running misleading Lap-Band ads without required risk information.
Orthofix makes headway in federal beefs
Orthofix International (NSDQ:OFIX) said it’s making strides toward resolving a trio of outstanding legal issues with the U.S. government.
The Lewisville, Texas-based orthopedic device maker is finalizing agreements to close criminal and civil matters related to its bone growth stimulation business and is reaching agreements in principle to settle violations of the Foreign Corrupt Practices Act and investigations into its Blackstone subsidiary for potential violations of the False Claims Act.
Smith & Nephew pays $22M fine for 10 years of bribery in Greece
British orthopedic titan Smith & Nephew (NYSE:SNN) must pay $22.2 million to settle charges of bribing Greek doctors for more than a decade, according to SEC documents.
The complaint alleges that Smith & Nephew subsidiaries used a distributor that created a "slush fund" to bribe doctors working at government hospitals in Greece.
White House defends Obamacare insurance mandate in Supreme Court brief | MassDevice.com On Call
MASSDEVICE ON CALL — In a Supreme Court briefing on Friday, the Obama administration defended its health care reform law, arguing that the Supreme Court would need to break with clear precedent in order to justify cutting down the insurance mandate.
The health care law requires most all Americans to purchase health insurance or pay a penalty, which the Justice Department defines as an unconstitutional tax. GOP lawmakers are urging the Supreme Court to strike down the entire Affordable Care Act if the individual mandate is deemed unconstitutional.
Da Vinci surgical robots may help repair NASA satellites | MassDevice.com On Call
MASSDEVICE ON CALL — Intuitive Surgical Inc.’s (NSDQ:ISRG) da Vinci robot may have applications that take it beyond our planet.
NASA scientists and researchers at Johns Hopkins University are looking at the medical machine to see if it may could one day help repair or refuel satellites in orbit.
Sending robots to space is far less costly and dangerous than sending a human to repair the satellites, and human operators would still be in control of the remotely operated da Vinci system.
MassDevice.com +3 | Weight loss: FDA warns Lap-Band advertisers, MDT to pay $23.5M to settle kickback claims, Baxter inks $325M buyout pact with Synovis
Say hello to MassDevice +3, a bite-sized view of the top three med-tech stories of the day. This latest feature of MassDevice.com’s coverage highlights our three biggest and most influential stories from the day’s news to make sure you’re up to date on the headlines that continue to shape the medical device industry.
If you read nothing else today, make sure you’re still in the know with MassDevice +3.
Medtronic to pay $23.5M to settle kickback claims
Medtronic (NYSE:MDT) agreed to pay $23.5 million to settle U.S. Justice Dept. allegations that it offered illegal kickbacks to encourage doctors to use its implantable pacemakers and defibrillators.
The DOJ accused Medtronic of using physician payments related to post-market studies and device registries as a kickbacks scheme, violating the False Claim Act.
The Fridley, Minn.-based med-tech titan admitted to no improper or unlawful action in settling the case.
Orsinger alights with $52M golden parachute from Synthes sale | Acquisitions Roundup
Synthes CEO Michel Orsinger will land a $52 million payout to give up the corner office as part of the Swiss orthopedic device maker’s $21.3 billion buyout by med-tech titan Johnson & Johnson (NYSE:JNJ).
The deal, slated to close in early 2012, includes a $51.9 million payout to Orsinger for leaving Synthes and a multimillion-dollar stock package for his new position with Johnson & Johnson.