Boston Scientific Corp.’s Guidant LLC unit will pay $9.25 million to settle a whistleblower’s claim that the company over-billed the U.S. and private hospitals for heart pacemakers and defibrillators. The U.S. Justice Department said the settlement ends a lawsuit filed against Guidant by a former sales agent, Robert A. Fry, in federal court in Nashville, Tennessee.
It was contended that Guidant reneged on credits owed to the U.S. Department of Veterans Affairs for replacement of units still under warranty and is accused of over-charging hospitals for the devices, causing them to over-bill Medicare. In a statement by the Justice Department, it was stated that “overcharging for lifesaving medical devices wastes taxpayer dollars.” That’s certainly very true and is something that can’t be tolerated.
Source: Bloomberg News
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