By Editor Josh Mitchell
River Mississippi News
THE UNITED STATES OF AMERICA — The U.S. government reached a multimillion-dollar payout agreement with the founder and chief financial officer of a Utah company that makes “spinal devices” in a case that accused doctors of being persuaded by “kickbacks” to put personal profit ahead of patient care for years.
Top-level Innovasis Inc. executives Brent and Garth Felix will pay a total of $12 million in the civil claim settlement under the False Claims Act’s whistleblower provisions. By law, the whistleblower, Robert Richardson, will receive about $2.2 million since he was the private party who filed the medical integrity case on behalf of the federal government.
The Innovasis settlement was reached to resolve allegations that “kickbacks” from the Utah-based medical-device company helped entice spine surgeons to use the company’s product, DOJ officials said in a Wednesday press statement.
Innovasis Inc. officials did not immediately reply to an emailed request for comment on the settlement Thursday morning.
The goal is to ensure that doctors are choosing medical devices that are best for the patients instead of basing such decisions on “improper payments from manufacturers,” the release adds.
“Payments from medical device manufacturers intended to influence a physician’s judgment about which medical devices or supplies to select are illegal,” Brian M. Boynton, head of the Justice Department’s Civil Division, said in the news release.
Authorities say they will continue to seek out other practitioners who allow medical recommendations, especially those involving Medicare, to become corrupted by financial influence in violation of the Federal Anti-Kickback Statute. The Innovasis case alleged that 17 orthopedic surgeons and neurosurgeons received improper benefits for using the company’s spinal implants, devices and other medical equipment when performing procedures on Medicare patients.
The U.S. whistleblower case covered a time range from 2014 to 2022 and alleged that the doctors received high-dollar consulting fees, “lavish dinners,” travel to a “luxury ski resort” and other perks, some for work that was not even performed.
U.S. authorities say this case is an example of how they continue to fight healthcare fraud.
