ResMed will pay $37.5 million to settle allegations that the company paid kickbacks to suppliers, sleep labs and other health care providers, the Department of Justice recently announced.
The San Diego company – which produces devices for sleep apnea and other breathing disorders – denied any wrongdoing.
“ResMed has not violated any laws; its business practices are conducted in full accordance with U.S. laws and regulations. That said, we are pleased to put this matter behind us and avoid the expense, inconvenience, and distraction it would cause to gain the favorable outcome we deserve,” the company said in a statement.
The agreement resolves claims originally raised by five civil lawsuits brought by whistleblowers under the False Claims Act, which encourages private citizens to step forward with knowledge of fraud against the government. The whistleblowers received $6.2 million as part of the settlement.
The federal Anti-Kickback Statute prohibits remuneration – defined as anything of value – for referrals to services reimbursed by Medicare or other federal health programs.
The allegations included that ResMed provided sleep labs with free and below-cost airway pressure masks and diagnostic machines; arranged for and guaranteed interest-free loans to suppliers; and provided suppliers with free telephone call center services and outpatient outreach services to encourage resupply orders.
ResMed said the settlement won't impact federal reimbursement of its offerings. The company first disclosed an outline of the settlement last summer.