Medical device maker inks $12.95M false claims settlement

Lake Oswego, Ore.-based Biotronik Inc. has agreed to pay $12.95 million to resolve allegations that it violated the False Claims Act by causing the submission of false claims to Medicare and Medicaid by paying kickbacks to physicians to induce their use of Biotronik's implantable cardiac devices, according to a July 22 press release from the Justice Department.

The settlement resolves allegations that Biotronik engaged in a scheme to pay favored physicians to induce and reward their use of Biotronik’s pacemakers, defibrillators and other cardiac devices. 

The settlement also resolves allegations that Biotronik violated the Anti-Kickback Statute when it paid for physicians' parties, tours, lavish meals with no legitimate business purpose, and international business class airfare in exchange for making brief appearances at international conferences.

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