Medical devicemaker to pay $8M to resolve physician kickback claims

Minneapolis-based Cardiovascular Systems has agreed to pay the federal government $8 million to resolve allegations that it paid physicians illegal kickbacks to induce use of the company's medical devices, according to the Department of Justice.

The government alleged CSI created and distributed marketing materials to promote physicians utilizing CSI's devices to referring physicians. The government further alleged that CSI coordinated meetings between utilizing physicians and referring physicians to induce physicians to begin to use or continue to use CSI's devices, according to the DOJ.

"Medical device companies engaging in kickbacks to boost profits undermine physicians' medical judgment and drive up healthcare costs for everyone," said Special Agent in Charge Derrick L. Jackson.

The allegations against CSI were originally brought in a whistle-blower lawsuit filed by Travis Thams, a former CSI employee.

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