A spine device manufacturer and Indiana-based surgeon were ordered to pay $2.6 million to the United States to settle illegal kickback allegations.
Omni Surgical — a company doing business as Spine 360 — allegedly paid kickbacks to Jamie Gottlieb, MD, to induce him to use the company's products. Medical device manufactures are restricted in their relationships with surgeons who use their products under the Anti-Kickback Statute, intended to prevent financial incentives from impacting a physician's medical judgment.
Spine 360 made payments to an entity Dr. Gottlieb controlled from 2007 to 2009, which were "purportedly made pursuant to a series of intellectual property agreements." However, the United States contended the agreements were shams and payments "were intended to compensate [Dr.] Gottlieb for using Spine 360 products in his surgeries."
"In addition to yielding a recovery for taxpayers, this settlement should deter similar conduct in the future and help make healthcare more affordable," said Assistant Attorney General Stuart F. Delery for the Justice Department's Civil Division.