(Reuters) — A subsidiary of Dutch medical device maker Philips has agreed to pay more than $24 million to settle alleged false claims for respiratory-related medical equipment, the U.S. Justice Department said on Thursday.
The subsidiary, Philips RS North America LLC, formerly known as Respironics Inc., settled allegations that it misled federal health care programs by paying back money to suppliers of durable medical equipment, the Justice Department said in a statement.
Respironics allegedly gave the vendor’s doctors prescribing data for free that could help their marketing efforts to doctors, the Justice Department said.
“Paying illegal compensation to induce patient referrals undermines the integrity of our nation̵7;s health care system,” said Deputy Assistant Attorney General Brian Boynton, director of the Justice Department’s civil division.
Respironics also entered into a five-year agreement with the US Department of Health and Human Services, Office of Inspector General, to implement a compliance program that includes reviewing arrangements with referral sources and monitoring Respironics’ sales force, the Justice Department said. .
The company did not immediately respond to a request for comment Thursday.