Doctor-device maker relationships ripe for fraud litigation. Exposing Misconduct.

Doctor-device maker relationships ripe for fraud litigation

August 26, 2019

A recent False Claims Act lawsuit claiming that a medical device company paid kickbacks to doctors illustrates an increasingly tenuous arrangement that may spur more whistleblower cases.

The Department of Justice intervened in the whistleblower suit against Life Spine seeking millions of dollars of damages for allegedly paying kickbacks in the form of consulting fees, royalties and intellectual property acquisition fees to induce physicians to use the manufacturer’s spinal implants, devices and equipment.

The doctors who received these payments accounted for about half of the Huntley, Ill.-based company’s domestic sales of spinal products from 2012 through 2018, the lawsuit claims. Life Spine would allegedly recruit surgeons who could use a high volume of its products and pay them to train other doctors, provide input on products and transfer their patents to Life Spine. The device manufacturer tied the payments to utilization, according to the suit.

Read more here.
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