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Editor: Marc Jay Bern
Profession: Defective Medical Device Lawyer

Category: Medtronic Lawsuit News

Medtronic Spine has agreed to pay the federal government $75 million to settle allegations that it caused false submission claims to Medicare by a subsidiary.

The allegations concerned Kyphon Inc., bought by Medtronic Spine in November 2007 for $3.9 billion after whistleblower allegations had already been made. In addition to the settlement, Kyphon has entered into a Corporate Integrity Agreement with HHS's Office of Inspector General.

Keyphon was accused of submitting false claims for kyphoplasty, a minimally invasive procedure used to treat compression factures of the spine that are caused by osteoporosis, benign lesions and cancer.

Allegations made by whistleblowers alleged the company was engaging in a marketing scheme that caused some hospitals to bill Medicare for inpatient kyphoplasties when cheaper outpatient procedures would have been more appropriate.

The allegations were made by two former employees under the False Claims Act, who will receive a total of $14.9 million for reporting the allegations.