Advanced Neuromodulation Services, a subsidiary of St. Jude Medical, has paid $2.95 million and committed to a three-year corporate-integrity agreement to settle allegations that it paid kickbacks to physicians, HHS inspector generals office announced today.
According to the inspector generals office, ANS, Plano, Texas, was paying physicians $5,000 every time they tested the companys spinal-cord stimulator on five patients. The program was a marketing tool for the pain treatment with no significant clinical value, the inspector generals office alleged.
ANS revealed in February 2005 that the government had subpoenaed documents. Modern Healthcare reported at the time that the investigation appeared to be related to the practices alleged in the settlement.
St. Jude Medical, which acquired ANS in November 2005, disclosed the resolution of the matter in a June 26 SEC filing and notes that it contains no admission of wrongdoing by ANS or its employees. -- by Gregg Blesch