Arthrex Inc. is a Florida-based medical device company specializing in orthopedic products. On November 8, 2021, the Department of Justice (“DOJ”) announced that Arthrex Inc. has agreed to a $16 million settlement for paying kickbacks that caused the submission of false claims to the Medicare program.
According to the DOJ, Arthrex paid kickbacks to a Colorado-based orthopedic surgeon, providing remuneration to the surgeon in the form of royalty payments to induce his use and recommendation of Arthrex’s SutureBridge and SpeedBridge products. In addition to the monetary settlement, Arthrex entered into a five-year corporate integrity agreement with HHS-OIG, which includes requirements for future compliance.
“Paying bribes to physicians to distort their medical decision-making corrupts the health care system,” said Acting U.S. Attorney Nathaniel R. Mendell for the District of Massachusetts. “The Department of Justice will continue to pursue medical device manufacturers that pay kickbacks to boost their profits,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. The government asserts that Kickbacks have no place in the health care system, and as such it will continue to identify and punish such conduct.
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