November 05, 2020

Medtronic Settles Allegations of Paying Kickbacks to South Dakota Neurosurgeon for $9.2 Million

The DOJ has reported that Medtronic USA Inc. (“Medtronic”) has entered into an agreement to pay $8.1 million to resolve allegations that it used illegal kickbacks to induce a South Dakota neurosurgeon to use its products in violation of the False Claims Act, and $1.1 million to resolve allegations Medtronic violated the ACA Open Payments Program (“OPP”) by improperly reporting payments made to the neurosurgeon to CMS. The OPP requires medical device manufacturers report to CMS certain payments or other transfers of value made to physicians. The settlement resolves complaints that Medtronic paid for social events at Carnaval Brazilian Grill, a restaurant that Medtronic knew was owned by the neurosurgeon,in exchange for the neurosurgeon’s use of Medtronic’s SynchroMed II intrathecal infusion pumps. This arrangement spanned a nine-year period during which time Medtronic allegedly paid for over one hundred social events for the neurosurgeon. In addition, Medtronic agreed to assist in DOJ investigations and litigation against other parties. Further, remedial actions were taken by Medtronic,including the termination of both the sales representative and sales manager implicated, along with disciplining twelve additional employees involved.