Boston Herald

Medical device co. settles suit

Will pay $3.1M for bribing doctors

- By DONNA GOODISON

A Danvers medical device company that plied doctors with meals and booze at some of the country’s top high-end restaurant­s to induce them to use its heart pumps will pay more than $3.1 million to settle kickback allegation­s.

Abiomed Inc. will pay the multimilli­on dollar settlement to resolve allegation­s it caused false claims for payment to be submitted to Medicare for the company’s Impella heart pumps that cost more than $20,000 each.

Andrew Lelling, the U.S. attorney in Boston, announced the civil settlement yesterday, after a nearly four-year investigat­ion. The settlement resolves claims initially raised in a federal lawsuit by former Abiomed employee Max Bennett under the False Claims Act, which allows whistleblo­wers to sue companies on behalf of the government to recoup taxpayer money paid based on fraudulent claims. Bennett will receive $542,500 of the settlement.

“We expect today’s settlement ... to serve as a warning to medical device manufactur­ers who try to improperly influence the treatment decisions of physicians,” Lelling said. “Providing doctors with lavish meals or meals that focus on entertainm­ent rather than education or science can impair a physician’s independen­t medical judgment — something each and every patient is entitled to.”

The federal investigat­ion found Abiomed treated doctors to meals at some of the most expensive U.S. restaurant­s, including Menton in Boston, Los Angeles’ Nobu, Spago in Beverly Hills and Eleven Madison Park in New York City.

According to the U.S. attorney’s office, Abiomed also:

• Paid for meals during which attendees ordered alcohol “in an amount inconsiste­nt with legitimate scientific discussion;”

• Paid for meals that exceeded its $150 per-person guideline and in one case exceeded $450;

• Misreprese­nted the number of attendees at physicians’ meals, listed them with generic names such as “Mike Anesthesia,” and listed fictitious names of individual­s who didn’t attend, making per-attendee costs appear lower.

An Abiomed spokeswoma­n said the company was “putting the matter behind us to focus on our heart recovery mission and to continue investing in innovation, education and clinical support to ensure we help improve patient outcomes.”

In a U.S. Securities and Exchange Commission filing, Abiomed said the government investigat­ed thousands of its business and educationa­l engagement­s with physicians and found less than 2 percent exceeded Abiomed’s internal guidelines.

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 ?? STAFF FILE PHOTO BY PATRICK WHITTEMORE ?? ‘SERVE AS A WARNING’: An Abiomed Inc. tractor trailer is shown in 2015 outside TD Garden. The company will pay $3.1 million for bribing doctors with lavish meals.
STAFF FILE PHOTO BY PATRICK WHITTEMORE ‘SERVE AS A WARNING’: An Abiomed Inc. tractor trailer is shown in 2015 outside TD Garden. The company will pay $3.1 million for bribing doctors with lavish meals.

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