AtriCure Inc. (NSDQ:ATRC) finalized a deal to pay $3.76 million over five years to settle a federal beef accusing it of running an illegal kickbacks and off-label marketing program for its atrial fibrillation devices, according to the U.S.Justice Dept.
In November, the West Chester, Ohio-based company said it tentatively settled a federal “qui tam” whistleblower lawsuit and a separate DOJ investigation. The terms of the final deal, like the tentative agreement reached last fall, "specifically state that AtriCure and its employees admit no wrongdoing or illegal activity,”according to an Atricure press release.
In November, the company said it set aside $3.8 million to cover the tentative settlement.
The lawsuit accused AtriCure of offering kickbacks to induce surgeons and hospitals to use its inpatient cardiac ablation procedure rather than less expensive, outpatient alternatives. The company was accused of promoting the spread between Medicare reimbursement rates for its procedure and the cost to hospitals and doling out kickbacks including free equipment, discounts, free advertising, marketing, and referral services and training for surgeons on its procedure.
The finalized settlement will see the company pay annual penalties (including interest) of $500,000, $500,000, $650,000, $1 million and $1.5 million.
AtriCure shares were down about 1 percent to $5.80 at 3:10 p.m.
Early rates for DeviceTalks Boston end August 15th.
Don't miss the chance to save $100 and join top medtech innovators including leaders from Hologic, Google, Gray Matter, TransEnterix, NxStage Medical, Smith & Nephew, HeartFlow, Dynatronics, Johnson & Johnson, Allied Minds, and many more.
View Full Agenda
Register today to save. Use code LASTCALL to save an additional 10%.