SAN JOSE, Calif., Oct. 26 (UPI) -- A California company agreed to pay the U.S. government $2.39 million to settle claims the company paid kickbacks to physicians, the Justice Department said.
The United States alleged DFine Inc. of San Jose used customer surveys as a means to pay participating physicians kickbacks as inducements to use the company's vertebral augmentation devices to treat spinal fractures, the department said Wednesday in the release. Although DFine ostensibly collected product information from participating physicians, each survey required use of a new DFine device in a patient, the majority of whom were on Medicare.
The government also alleged DFine provided physicians improper remuneration and solicited physicians to move their business from a competitor's product, among other things, the Justice Department said.
DFine allegedly violated the Anti-Kickback Statute, which prohibits offering or paying remuneration to induce referrals of items or services covered by Medicare, Medicaid or other federally funded programs, among other things, the Justice Department said.
"Decisions about devices used to treat serious spinal conditions should be based on the best interests of the patient, not on whether the manufacturer is going to pay a kickback," said Tony West, assistant attorney general for the department's Civil Division. "These sorts of improper financial incentives not only undermine the integrity of medical decisions, they also waste taxpayer funds and are unfair to competitors who are trying to play by the rules."
