Philips is paying US prosecutors more than $24 million (€24.1 million) for alleged US health insurance programs. With the settlement, the medical technology company and the US judiciary put an end to the case. Prosecutors accused a Philips subsidiary of bribing medical equipment suppliers.
The allegations revolve around the former Respironics, a ventilator company owned by Philips since 2007. The US Department of Justice suspects that the company paid “money” to suppliers of medical devices with free information about treatments doctors prescribe to patients, which could help with marketing. In return, suppliers submitted claims to Medicare, Medicaid, and TRICARE health insurance programs for ventilators. This would amount to deception.
With the settlement, Philips’ part does not plead guilty. However, the company has promised to participate in a five-year program aimed at doing business with integrity. Previous Respironics is also taking a closer look at its deals with parties that prescribe medical treatments to patients. The company’s sales team is also supervised.
A Respironics employee who reported the alleged fraud to US authorities will receive a portion of the amount paid by Philips. It’s about $4.3 million, according to the US Department of Justice.
Earlier this week, Philips reached a $4.2 million settlement with US attorneys general. The company did not properly inform the military about modifications to some medical equipment used by the armed forces.
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