The US Justice Department announced that a subsidiary of Dutch medical device maker Philips has agreed to pay more than $24 million to settle allegations of false claims regarding respiratory-related medical equipment.

According to the Justice Department, the subsidiary, Philips RS North America LLC, formerly known as Respironics Inc, resolved allegations that it defrauded federal healthcare programs by paying kickbacks to durable medical equipment suppliers.

According to the Justice Department, Respironics allegedly provided the suppliers with free physician prescribing data to aid their marketing efforts to physicians.

“Paying illegal remuneration to induce patient referrals undermines the integrity of our nation’s healthcare system,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s civil division.

Respironics also agreed to a five-year agreement with the Office of the Inspector General of the United States Department of Health and Human Services to implement a compliance program that includes a review of referral arrangements and monitoring of Respironics’ sales force, according to the Justice Department.

According to a Philips spokesperson, the subsidiary agreed to settle the claim in order to avoid the expense of litigating the allegations.

“In agreeing to a settlement, Philips Respironics is not acknowledging any alleged facts, liability, or wrongdoing in the claim,” the company spokesperson said in an emailed statement.

“This agreement should have no impact on our customers or the patients they serve,” the company added.

(Adapted from Latestly.com)  

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