New False Claims Act settlement points to risks of offering free goods and services to customers and referral source

A recent settlement announced by the U.S. Department of Justice (DOJ) strikes a note of caution for device and drug manufacturers who are considering offering free or discounted goods and services to customers and other referral sources.

ResMed Corp. (ResMed), a manufacturer of durable medical equipment (DME), has agreed to pay more than US$37.5 million to resolve alleged False Claims Act (FCA) violations for paying kickbacks to DME suppliers, sleep labs, and health care providers. This settlement demonstrates that DOJ continues to view free goods and services as potential kickbacks when provided to those in a position to buy or recommend a manufacturer's products, and manufacturers should continue to consider carefully the potential risk that such offers raise under the federal anti-kickback statute (AKS) and other fraud and abuse laws.

Read More: New False Claims Act settlement points to risks of offering free goods and services to customers and referral source


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