Corporate Compliance

Endoscopic Technologies settles Medicare fraud case

Compliance Monitor, July 22, 2009

Endoscopic Technologies Inc., a medical device manufacturer, agreed to pay the United States $1.4 million to resolve civil claims, according to a Department of Justice release.
 
The DOJ alleged the company violated the False Claims Act and the Food, Drug, and Cosmetic Act by: 
  • Marketing its medical devices to treat atrial fibrillation (the most common cardiac arrhythmia or abnormal heart rhythm), a use that is not approved by the FDA
  • Promoting expensive heart surgeries using the company’s devices when less invasive alternatives were appropriate
  • Advising hospitals to up-code surgical procedures using the company’s devices to inflate Medicare reimbursements
  • Paying kickbacks to healthcare providers to use its devices
The whistleblower who filed the case on behalf of the government will receive $210,000 as the statutory share of the settlement.

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