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Regulatory MonitoringJul
22
Endoscopic Technologies settles Medicare fraud case
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Endoscopic Technologies Inc., a medical device manufacturer, agreed to pay the United States $1.4 million to resolve civil claims, according to a Department of Justice release.
The DOJ alleged the company violated the False Claims Act and the Food, Drug, and Cosmetic Act by:
- Marketing its medical devices to treat atrial fibrillation (the most common cardiac arrhythmia or abnormal heart rhythm), a use that is not approved by the FDA
- Promoting expensive heart surgeries using the company’s devices when less invasive alternatives were appropriate
- Advising hospitals to up-code surgical procedures using the company’s devices to inflate Medicare reimbursements
- Paying kickbacks to healthcare providers to use its devices
The whistleblower who filed the case on behalf of the government will receive $210,000 as the statutory share of the settlement.
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