Philips to pay $1.3M in second kickback settlement in month


A Philips subsidiary agreed to pay approximately $1.3 million to settle charges it unlawfully paid kickbacks as part of its second resolution addressing alleged False Claims Act (FCA) violations this month.

Philips RS North America, formerly known as Respironics, manufactures durable medical equipment (DME) specializing in sleep aid products. The company unlawfully induced referrals for its equipment in violation of the FCA and anti-kickback statute, the Department of Justice (DOJ) announced in a press release Thursday.

In the case, which grew out of a 2017 whistleblower lawsuit filed in U.S. District Court for the District of Northern Iowa, Respironics was alleged to have helped DME suppliers purchase Respironics equipment by helping the suppliers to secure interest-free loans fully guaranteed by Respironics. The loans acted as an inducement for the DME suppliers to recommend Respironics’ equipment for Medicare and Medicaid patients, according to the settlement agreement.

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