Heart device manufacturer St. Jude Medical, Parma (Ohio) Community General Hospital and Norton Healthcare, in Louisville, Ky., have agreed to pay the U.S. $3.9 million to settle false claims allegations that St. Jude paid kickbacks to two hospitals to obtain heart-device business, according to a U.S. Justice Department press release.
The false claims lawsuit, filed by a whistleblower, alleged the illegal kickbacks included retroactive rebates that were paid based on the hospital's previous purchases of St. Jude heart devices and rebates to induce future purchases of devices from St. Jude.
Under terms of the settlement, St. Jude, based in St. Paul, Minn., will pay $3.725 million, Parma Community will pay $40,000 and Norton will pay $133,300.
Read the Justice Department news release on the St. Jude fraud settlement.