Thanks to a False Claims Act case filed by Adolfo Schroeder, a former employee of Medtronic, the Minnesota-based medical device manufacturer has agreed to pay $9.9 million to settle allegations that the company paid kickbacks to physicians according to a DoJ press release.  Mr. Schroeder alleges that Medtronic paid, provided free marketing and business development plans, and provided tickets to sporting events to physicians in order to induce them to implant Medtronic pacemakers and defibrillators.

“Decisions about devices used to treat cardiac rhythmic disease should be based on the best interests of the patient, not on whether the manufacturer is going to pay a kickback,” said U.S. Attorney Benjamin Wagner of the Eastern District of California.  “These sorts of improper financial incentives not only undermine the integrity of medical decisions, they also waste taxpayer funds and are unfair to competitors who are trying to play by the rules.”

To report healthcare fraud, please contact Frohsin & Barger.