Medtronic to Pay United States $40 Million to Settle Kickback Allegations

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WASHINGTON, July 18 /U.S. Newswire/ -- Medtronic Inc. has agreed to pay the United States $40 million to settle civil allegations that its Medtronic Sofamor Danek division (MSD) paid kickbacks to doctors to induce them to use MSD's spinal products, the Justice Department announced today. The government had alleged that, between 1998 and 2003, Medtronic paid kickbacks in a number of forms, including sham consulting agreements, sham royalty agreements and lavish trips to desirable locations. The Justice Department contended that these kickbacks violated the Anti-Kickback Statute and the False Claims Act.

"Kickbacks to physicians are incompatible with a properly functioning health care system," said Peter Keisler, assistant attorney general for the Department's Civil Division. "They corrupt physicians' medical judgment and they cause overutilization and misallocation of vital health care resources. Today's settlement reflects the progress we are making in the ongoing fight against abusive and illegal practices in the healthcare industry."

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Medtronic to Pay United States $40 Million to Settle Kickback Allegations

The government's investigation was triggered by t...

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