ResMed, a medical devicemaker based in San Diego, agreed to pay the U.S. $37.5 million to resolve claims that it provided free goods and services to companies to sell more of its equipment, the U.S. Justice Department announced Jan. 15.
The whistleblower lawsuit alleged ResMed provided companies with free telephone call center services and other patient outreach services to entice them to reorder ResMed supplies.
It also alleged ResMed provided sleep labs with free and below-cost medical equipment, as well as free installation of the devices.
The lawsuit also claims ResMed paid medical device suppliers' loans from third-party financial institutions to entice them to order ResMed equipment and that it gave physicians free medical devices.
"When companies give free equipment to doctors for the sole purpose of generating business and increasing their bottom lines, federal health insurance programs should not foot the bills," U.S. Attorney Richard Donoghue said in a news release.
ResMed also entered into an agreement with HHS that requires the company to implement additional controls around its product pricing and sales.
Read the full news release here.