Morning Briefing
Summaries of health policy coverage from major news organizations
Scope Maker Olympus To Settle Federal Kickback Investigation For $646 Million
Medical device maker Olympus Corp., already under federal investigation for its role in superbug outbreaks, has agreed to pay $646 million to resolve criminal and civil probes into illegal kickbacks and bribes to doctors and hospitals. Federal prosecutors said Tuesday that the company鈥檚 settlement is the largest ever for violations of the U.S. Anti-Kickback Statute. A portion of the company鈥檚 payout, $22.8 million, will resolve similar bribery allegations in Latin America. (Terhune, 3/1)
The settlements resolve charges brought against the company by the U.S. attorney鈥檚 office for the District of New Jersey. The government alleged the U.S. bribes caused health-care providers to bill government health-care programs in violation of the False Claims Act. 鈥淭here was a relatively widespread pattern of the company using various forms of financial benefits鈥攃ash, trips, consulting agreements鈥攖o induce doctors, hospitals and other health-care providers to buy their stuff,鈥 Paul J. Fishman, the U.S. attorney for New Jersey, told The Wall Street Journal. (Walker, 3/1)
Olympus Corp., the nation鈥檚 largest distributor of endoscopes and related equipment, will pay $646 million to resolve separate criminal and civil investigations into kickbacks and foreign bribery, company and federal officials announced Tuesday. Olympus said its U.S. unit will pay $623.2 million plus interest to end the kickback case in New Jersey. The company also agreed to a corporate-integrity agreement and the appointment of a monitor. (3/1)
After Olympus Corp. paid to fly three doctors from a prominent California hospital to Japan for a weeklong vacation, one of the physicians thanked the company for providing them with 鈥渟o much extra entertainment that we did not expect.鈥 The expense-paid trip was just one of the dozens of illegal kickbacks that the Japanese maker of endoscopes paid to American doctors and hospitals for at least five years as it sought to increase sales in its most lucrative market, according to a criminal complaint federal prosecutors released Tuesday. (Peterson, 3/1)
A corporate whistleblower is set to collect $51 million 鈥 his share of a massive settlement with Olympus America to resolve charges it gave doctors and hospitals kickbacks to order its medical equipment. (Connor, 3/1)
