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Surgery center, joint supplier settle with Medicare

Ambulatory Surgery Reimbursement Update, October 10, 2006

The Siouxland Surgical Center in Dakota Dunes, South Dakota, and its artificial joint supplier will repay $345,000 to Medicare after settling a lawsuit claiming its physicians received payments from the supplier as incentive to use the supplier's devices, according to the Associated Press (AP) citing a release from the U.S. attorney's office.

The lawsuit was filed by a former doctor who used to work for the surgery center's primary owner-a group of physicians affiliated as the Center for Neurosciences, Orthopedics & Spine (CNOS).

The doctor claimed that CNOS doctors received payments from Stryker Corp., of Portage MI, as an incentive to use the supplier's orthopedic products. Stryker listed the payments to the surgery center as rent for space in the facility used for trade shows and speaker programs, but the lawsuit claims Stryker never used the space for these purposes.

The defendants were accused of violating the anti-kickback statute, which prohibits one entity from paying another as means of enticing a purchase.

The lawsuit was filed in July 2004, but it was sealed until the out-of-court settlement was reached, according to the AP story.

To read the AP story, click here.

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