Medhealth Review

Philips Has to Shell Out $24 Million to Settle 2nd Set of Claims by the U.S Department of Justice

Philips has agreed to a second settlement that involves $24 million. Across these two settlements, the firm will now have to pay beyond $28 million. This is for resolving cases that involve failure regarding mobile patient monitoring devices. The loss concerns recertifying adaptations to the device. It is also about extending physician prescription data to a medical device provider as a kickback. 

The company informs that it had kept more than $30 million. With the latest settlement, the firm will find relief from the legal issues associated with the case.

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According to the DOJ, Respironics had extended kickbacks to several medical equipment customers. For example, the former had allegedly bought data on prescribing decisions of several physicians in the U.S. This information was then transferred to the DME suppliers. Although it involved a heavy price, the purchase led to the exchange of crucial information. 

“Respironics knew that the data was of incredible value to the DME suppliers, who could use it to identify physicians in their area to target sales. “Respironics’ purpose, when giving the data to the DME Suppliers, was to induce the DME Suppliers to recommend Respironics’ At-Issue products to patients and physicians — and the DME Suppliers knew that this was Respironics’ purpose,” informs the DOJ, further.

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The allegations by DOJ involve Respironics being constantly engaged in the act from 2016 to 2020 for four years. 

“We maintain a comprehensive compliance program and will work with the relevant authorities to satisfy the settlement terms. This agreement should not impact our customers or the patients they serve. Settling this claim allows us to put this matter behind us and maintain our focus on our customers and the patients they serve.” This is what Philips had to say about the settlement. 

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