Philips unit settles DOJ false claims case for $14.7M

Wireless medical technology company BioTelemetry and its subsidiary LifeWatch Services agreed to pay more than $14.7 million as part of a settlement with the Department of Justice (DOJ) regarding alleged false claims submitted to federal healthcare programs.

BioTelemetry, which was acquired by Philips in 2021, was accused of violating the False Claims Act by knowingly submitting claims for a higher level of service than physicians had ordered or that was medically necessary, according to the DOJ’s press release Monday.

Of the settlement total, nearly $7.4 million is restitution, per the settlement agreement. Michael Pelletier, an individual employed by one of LifeWatch’s customers, will receive approximately $2.3 million for his claims under the qui tam provisions of the False Claims Act that initiated the case, while another group of whistleblowers will receive approximately $270,000.