Overview of the Case

In a recent turn of events, Philips Respironics, a globally recognized name in the healthcare industry, has agreed to pay $2.4 million to settle allegations surrounding the provision of free masks to sleep labs as kickbacks. This case has brought to light the company’s practice of providing these masks as an incentive for sleep physicians to prescribe Philips’ respiratory care products.

Violation of the False Claims Act and Anti-Kickback Statute

The company was accused of violating the False Claims Act and the Anti-Kickback Statute. These allegations were based on the premise that Philips provided sleep labs with free masks, encouraging referrals or prescriptions for Respironics-brand masks. This settlement comes in the wake of another recent case where the company reached a settlement in a class action claim over recalled CPAPs, BiPAPs, and ventilators.

The Role of the Department of Justice

The Department of Justice played a pivotal role in this case. Their findings revealed that the free masks provided to sleep labs were used to diagnose and treat sleep disorders. These masks were incentives that encouraged sleep physicians to prescribe Philips’ respiratory care products. The case, however, never proceeded to court. Philips was found to have violated the Anti-Kickback Statute as well as the False Claims Act, leading to the current settlement.

Allegations of Improper Sales and Marketing Practices

Aside from the kickback controversy, Philips was also...

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