Arthrex will pay $16 million to resolve kickback allegations

Arthrex will pay $16 million to resolve kickback allegations


The U.S. Department of Justice announced on Monday that medical device company Arthrex agreed to pay $16 million to settle allegations that it paid a doctor to promote sales.

The private company allegedly paid millions of dollars to Dr. Peter Millett, a plastic surgeon in Colorado, under the guise of royalties. Although Arthrex and Millett have reached a royalties agreement for his help in developing the SutureBridge and SpeedBridge suites since 2010, the federal authorities argued that the company paid him royalties higher than typical rates. So that he can use and recommend his products.A sort of informer Alleged that this caused other suppliers to submit false claims and violated the False Claims Act and anti-kickback regulations.

“Paying bribes to doctors to distort their medical decisions will undermine the healthcare system,” Acting U.S. Attorney Nathaniel Mendel said at a news conference.

Arthrex signed a five-year corporate integrity agreement with the HHS Inspector General’s Office, but did not immediately respond to a request for comment.

Millett denied the allegations, his lawyer Marc Kasowitz’s Kasowitz, Benson Torres LLP said.

“Regardless of the reason for Arthrex’s settlement, Dr. Millett is undoubtedly entitled to these royalties, and the fact that the DOJ has not taken any action against Dr. Millett confirms that he has never engaged in any improper or illegal behavior,” Kasowitz said in a statement In the statement.

The whistleblower Joseph Shea, a Massachusetts resident and former Arthrex sales representative, will receive more than $2.5 million in bonuses.

equipment manufactory Payment to the surgeon is usually through royalties or consulting contracts Help them design new implants.But the federal regulatory agency The crackdown is getting bigger and bigger For ethical and legal considerations, these arrangements are discussed.

Since then, Arthrex has paid doctors more than $315 million in royalties, license fees and consulting fees Open payment of CMS Tracking data began in 2014.

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