DFine, a spine device company based in San Jose, Calif., has agreed to pay $2.39 million to resolve federal allegations that it paid kickbacks to induce physicians to use certain devices used to treat spinal fractures, according to a news release from the Department of Justice.
DFine allegedly used a customer survey as a vehicle to pay physicians illegal kickbacks. Each survey required the use of a DFine device in a patient, the majority of whom were Medicare beneficiaries. In each case, DFine paid physicians up to $500 per patient to participate in the survey.
The government also claimed that DFine violated the Anti-Kickback Statute by providing improper remuneration in the form of travel expenses, lavish dinners, entertainment and promotional speaker fees to physicians located in Chicago and Little Rock, Ark.
The whistleblower who initiated the suit will receive approximately $250,000 of the settlement.
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DFine allegedly used a customer survey as a vehicle to pay physicians illegal kickbacks. Each survey required the use of a DFine device in a patient, the majority of whom were Medicare beneficiaries. In each case, DFine paid physicians up to $500 per patient to participate in the survey.
The government also claimed that DFine violated the Anti-Kickback Statute by providing improper remuneration in the form of travel expenses, lavish dinners, entertainment and promotional speaker fees to physicians located in Chicago and Little Rock, Ark.
The whistleblower who initiated the suit will receive approximately $250,000 of the settlement.
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