Medical device co. settles suit
Will pay $3.1M for bribing doctors
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.