# Philips subsidiary to pay over $24 million for alleged false claims for medical equipment
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-09-02
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Philips Subsidiary Agrees to Pay $24M Over Alleged False Claims
Meta Description: Dutch medical device maker Philips' subsidiary to pay $24 million for alleged kickbacks to equipment suppliers, resolves claims with U.S. Justice
URL: https://financedigest.com/philips-subsidiary-to-pay-over-24-million-for-alleged-false-claims-for-medical-equipmenthtml

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By Kanishka Singh

WASHINGTON (Reuters) -A subsidiary of Dutch medical device maker Philips has agreed to pay over $24 million to resolve alleged false claims over respiratory-related medical equipment, the U.S. Justice Department said on Thursday.

The subsidiary, Philips RS [North America](https://www.financedigest.com/the-north-america-toxicology-laboratories-market-to-get-digitally-amplified.html "The North America Toxicology Laboratories Market to get digitally amplified") LLC, formerly known as Respironics Inc, resolved allegations that it misled federal healthcare programs by paying kickbacks to durable medical equipment suppliers, the Justice Department said in a statement.

Respironics allegedly gave the [suppliers physician prescribing data free of charge](https://www.financedigest.com/tesco-to-charge-online-booker-suppliers-new-fulfilment-charge.html "Tesco to charge online, Booker suppliers new fulfilment charge") that could assist their marketing efforts to physicians, the Justice Department said.

Paying illegal remuneration to induce [patient referrals undermines the integrity of our nation’s healthcare system,”](https://www.financedigest.com/health-care-systems-show-moderate-decrease-in-liability-claims-find-correlation-between-worker-safety-and-patient-safety.html "Health Care Systems Show Moderate Decrease in Liability Claims, Find Correlation Between Worker Safety and Patient Safety") said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s civil division.

Respironics also [entered into a five-year agreement](https://www.financedigest.com/the-city-of-boise-and-uledger-enter-into-agreement.html "The City of Boise and ULedger Enter Into Agreement") with the U.S. [Department of Health](https://www.financedigest.com/baswares-e-invoicing-to-eliminate-inefficiencies-in-health-department.html "Basware’s e-invoicing to eliminate inefficiencies in Health Department") and Human Services, Office of the Inspector General to implement a compliance program that includes review of arrangements with referral sources and monitoring of Respironics’ sales force, the Justice Department said.

A Philips spokesperson said its subsidiary [agreed to settle the claim](https://www.financedigest.com/cvs-walmart-walgreens-agree-to-pay-13-8-billion-to-settle-u-s-opioid-claims-sources.html "CVS, Walmart, Walgreens agree to pay .8 billion to settle U.S. opioid claims – sources") to avoid the required expense of litigating the allegations.

In agreeing to a settlement, Philips Respironics is not acknowledging any alleged facts, liability, or wrongdoing in the [claim,” the company](https://www.financedigest.com/game-company-roblox-enabled-girls-sexual-exploitation-lawsuit-claims.html "Game company Roblox enabled girl’s sexual exploitation, lawsuit claims") spokesperson said in an emailed statement.

This agreement should have no [impact on our customers](https://www.financedigest.com/the-fca-is-taking-immediate-action-on-customer-vulnerability-but-how-does-this-impact-advisers.html "The FCA is taking immediate action on customer vulnerability; but how does this impact advisers?") or the patients they serve,” the company added

(Reporting by Kanishka Singh in Washington; Editing by Jonathan Oatis and Alistair Bell)


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