Sightpath Medical, a Minneapolis-based ophthalmic equipment company, and its former CEO, James Tiffany, will pay more than $12 million to settle allegations of an illegal kickback scheme under the False Claims Act to lure physicians to use its products.
A whistleblower accused Sightpath Medical and Bloomington, Minn.-based Precision Lens of providing kickbacks to physicians through various forms, such as travel, entertainment and improper consulting agreements.
The lawsuit cited examples of Sightpath using luxury skiing vacations, high-end golfing, hunting or fishing trips to persuade physicians to use its products. In addition, the U.S. government contends Sightpath entered into improper consulting agreements with physicians for services not performed or not documented properly, resulting in excess payments. The lawsuit further alleged Mr. Tiffany knowingly induced physicians to use the company's products as he was directly involved with participating in the luxurious trips and entering into improper consulting agreements,
According to the U.S. Department of Justice, the kickbacks occurred from 2006 to 2015 and resulted in the submission of false claims to the U.S. for ophthalmic equipment and services.. The lawsuit alleges Mr. Tiffany was directly involved with participating in the luxurious trips and entering into improper consulting agreements.
"Medicare beneficiaries depend on their physicians to make decisions based on sound medical judgment," said Chad Blumenfield, an assistant U.S. attorney. "Our office will take decisive action to address allegations that medical providers are receiving improper financial benefits that could influence medical decision making."
As part of the settlement, Sightpath also entered into a five-year corporate integrity agreement with the Office of Inspector General.