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Article Excerpt
A former employee of Medtronic Sofamor Danek (MSD), a spinal implant division of Medtronic, Inc., has sued the company as well as numerous physicians and their employers under the False Claims Act, alleging that MSD pays--and the doctors accept--improper financial incentives to use its products. (U.S. ex rel. Poteet v. Medtronic, Inc., No. 03-2979 (W.D. Tenn. third amended complaint filed Feb. 10, 2005).)
The plaintiff, Jacqueline Kay Poteet, claims that the company in effect bribes doctors, by paying for meeting attendees' meals and entertainment, for example, and through written consulting agreements, in which doctors agree to advise MSD. In exchange, the doctors use Medtronic products, regardless of whether they are the best choice for the procedure, and encourage colleagues to do so. Poteet says the defendants submitted fraudulent and ineligible claims to Medicare for reimbursement, in violation of the AntiKickback Statute....
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