PITTSBURGH & CEDAR RAPIDS, Iowa (September 23, 2022)—Philips RS North America LLC, formerly known as Respironics, Inc., a nationwide manufacturer of sleep and respiratory durable medical equipment (DME), has agreed to pay more than $1.2 million to settle allegations that it unlawfully induced referrals for its equipment in violation of the False Claims Act and Anti-Kickback Statute.
The government specifically alleged that, between December 2015 and December 2016, Respironics helped a DME supplier procure a twelve-month, interest-free loan that was fully guaranteed by Respironics. Under the arrangement, Respironics bore the full financial risk of non-collection on the loan in the event the DME supplier defaulted on the loan. The United States contended this arrangement violated the Anti-Kickback Statute and, in turn, the False Claims Act.
“Illegal kickbacks in our federal health care system create an unfair marketplace and the potential for medical decisions to be made based on financial incentive rather than what’s best for the patient,” said U.S. Attorney Timothy Duax. “Our office is committed to the full and fair enforcement of the Anti-Kickback Statute and False Claims Act.”
This payment comes on the heels of a $24 million payment to resolve claims that Rspironice caused DME suppliers to submit claims for ventilators, oxygen concentrators, CPAP and BiPAP machines, and other respiratory-related medical equipment that were false because Respironics provided illegal...
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