OIG Settles Kickback Case Against Devicemaker

The HHS Office of Inspector General (OIG) announced it reached a nearly $2.95 million settlement with Advanced Neuromodulation Systems (ANS), resolving allegations that the medical device maker paid kickbacks to physicians.

In addition to the fine, ANS entered a three-year corporate integrity agreement that requires reviews of the company’s arrangements with physicians.

The OIG alleged that ANS paid a number of physicians $5,000 for every five new patients tested with one of the company’s products. The OIG also alleged that ANS sales and marketing representatives gave physicians sports tickets, free trips, free dinners, grants and other gifts.

During the OIG’s investigation, ANS was purchased by St. Jude Medical.