- Royal Philips NV PHG has agreed to pay over $24 million to clear up alleged false claims about respiratory-related medical devices, the US Department of Justice.
- The subsidiary, formerly Philips RS North America LLC Respironics Incresolved allegations that it misled federal healthcare programs by paying kickbacks to suppliers of durable medical equipment, the Justice Department said in a statement.
- Respironics allegedly gave suppliers prescription data from doctors free of charge, which could aid in their marketing efforts to doctors, the Justice Department said.
- See also: Philips is recalling some ventilators because of contaminated plastic components.
- “Paying illegal remuneration to induce patient referrals undermines the integrity of our country’s healthcare system,” said Brian Boynton, deputy assistant attorney general, chief of the Justice Department’s civil division.
- Respironics also entered into a five-year agreement with the US Department of Health and Human Services, Office of the Inspector General, to implement a compliance program that includes reviewing referral source agreements and overseeing Respironics sales personnel.
- Price promotion: PHG shares are down 0.49% to $16.33 during the premarket session last Check Friday.
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