Medtronic Subsidiary Pays Over $17 Million for Alleged Device Kickbacks

Medtronic subsidiary Covidien agreed to pay nearly $17.5 million to put to rest allegations that it illegally incentivized California and Florida physicians to buy its vein ablation devices.

The DOJ said that the firm offered physicians in those states free or marked down support to persuade them to buy Covidien devices, such as ClosureFAST radiofrequency ablation catheters that were charged to Medicare and state Medicaid programs.

“The Anti-Kickback Act prohibits the payment of remuneration to induce the referral or use of items or services paid for by federal health care programs.  Remuneration includes not only cash payments but also offers or payments made ‘in kind,’” the DOJ noted.