The company will pay the United States $34 million along with a criminal fine of roughly $7.8 million. The criminal fine comes from Orthofix's guilty plea to a felony of obstruction of a federal audit involving its failure to disclose information concerning its practices regarding certificates of medical necessity to a Medicare contractor during a June 2008 audit.
The settlement stems from a whistleblower suit alleging Orthofix improperly waived patients' co-payments and misrepresented the true cost to federal programs, resulting in overpayments. The suit also claims the company paid kickbacks to physicians and staff members to induce the use of Orthofix products and failed to inform patients they could rent rather than purchase products.
The whistleblower, Jeffrey Bierman, will receive roughly $9.2 million as his share of the civil settlement.
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