NeuroMetrix paid physicians in the form of free boxes of disposable biosensors for use with the company’s NC-stat System to encourage the physicians to recommend the device to colleagues. NeuroMetrix also allegedly caused physicians to seek reimbursement using a higher valued CPT code under certain circumstances when physicians performed a nerve conduction study using the NC-stat System.
Of the $3.7 million, NeuroMetrix will pay $1.2 million as a criminal penalty after admitting that it provided the free biosensors; the remaining $2.5 million settles the kickback and fraudulent up-coding allegations.
Read the U.S. Attorney’s Office news release about the $3.7 million NeuroMetrix penalty.
Read the NeuroMetrix news release about the NeuroMetrix settlement.
