Medtronic settles false claim allegations
Pharma Compliance Alert, May 28, 2008
Medtronic Spine LLC, formerly known as Kyphon Inc., will pay $75 million to settle a lawsuit claiming it defrauded Medicare, according to a Department of Justice (DOJ) press release.
The DOJ alleged Kyphon caused false claims to be submitted for its kyphoplasty procedure, which is a minimally-invasive surgery used to treat compression fractures of the spine. Kyphon allegedly engaged in a seven-year marketing scheme that resulted in hospitals billing Medicare for kyphoplasties performed on an inpatient basis rather than less costly and clinically appropriate outpatient kyphoplasties.
Kyphon also entered into a corporate integrity agreement.
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