Corporate Compliance

Medical manufacturer Atricure to pay U.S. $3.76 million

Compliance Monitor, February 10, 2010

Atricure Inc. will pay the United States $3.76 million to resolve allegations that the medical device manufacturer illegally marketed its surgical ablation devices, according to a Department of Justice (DOJ) press release.
 
Allegedly, Atricure marketed the medical devices to treat atrial fibrillation, a use that was not approved by the FDA. According to the DOJ, Atricure also took part in the following alleged offenses:
 
  • Promoting the company’s devices during expensive heart surgery, when less invasive means were appropriate
  • Advising hospitals to up-code procedures using the company’s devices to inflate Medicare reimbursement
  • Paying kickbacks to healthcare providers for use of its devices
The whistleblower who filed this lawsuit under the qui tam provisions of the False Claims Act, will receive $625,000 of the settlement.

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