Category: Healthcare

Colorado-based Spectranetics Corporation to Pay $5 Million to Resolve Allegations Relating to Its Medical Devices

The Department of Justice announced that Spectranetics Corporation, a medical device manufacturer, has agreed to pay the United States $4.9 million in civil damages plus a $100,000.00 forfeiture to resolve various claims against the company.  Spectranetics sells certain types of medical lasers and peripheral devices for those lasers.  The claims against Spectranetics arose from allegations that the company engaged in several inappropriate acts from 2003 to 2008,

Minnesota Hospital to Pay U.S. to Resolve Allegations of False Claims Involving Unnecessary Admissions

Wheaton Community Hospital, the City of Wheaton (MN), and Dr. Stanley Gallagher have agreed to pay the United States $846,461.00 to settle allegations that their hospital admission practices violated the False Claims Act.  In particular, the suit against Wheaton Community Hospital, the City, and Dr. Gallagher alleged that they admitted some patients and kept others admitted to acute care when doing so was not medically necessary. 

Michigan Health Care Provider to Pay United States $669,413 to Settle False Claims Allegations

Genesys Health System, a Michigan-based health care service provider, has agreed to pay the United States $669,413.00 to settle allegations that it submitted false claims to Medicare. Specifically, a whistleblower’s qui tam suit alleged that from 2001 through 2007, Genesys repeatedly billed Medicare for higher levels of service than were actually provided to the company’s cardiology patients.

Los Angeles’ Kerlan Jobe Orthopaedic Clinic Pays $3 Million to Settle Kickback Allegations

An orthopaedic sports medicine clinic in Los Angeles, California, has agreed to pay $3 million to the United States government to settle allegations that it received illegal kickbacks from HealthSouth Corporation.  The Kerlan Jobe Orthopaedic Clinic, a prominent practice whose patients have included numerous pro athletes, allegedly received kickbacks from HealthSouth Corporation in the form of loan forgiveness,

U.S. Proceeds with Related Action Against Two Nursing Home Chains and Their Principals

The United States Attorney’s Office for the District of Massachusetts announced the settlement of multiple false claims act cases against Omnicare, Inc. of Covington, Kentucky,  for $98 million for soliciting and receiving multiple kickbacks.  The first scheme involved Johnson and Johnson and kickbacks for recommending that physicians prescribe Risperdal, a J&J antipsychotic drug,

AtriCure Pays $3.8M to Settle With U.S.

The manufacturer of devices for treatment of atrial fibrillation (irregular heartbeats) tentatively settled with the US Department of Justice allegations of false claims for $3.8 million.  The DOJ claimed that the manufacturer, AtriCure, marketed its devices beyond the scope of its FDA clearance and by instructing hospitals to use incorrect Medicare billing codes.

United States Intervenes in False Claims Act Suit Against Virginia Medicaid Providers

The United States and the Commonwealth of Virginia have intervened in a False Claims Act suit in the Western District of Virginia against the Medicaid providers Universal Health Services Inc., Keystone Marion LLC and Keystone Education and Youth Services LLC, the Justice Department announced today. They did business as the Keystone Marion Youth Center,

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