A Pennsylvania company that makes sleep apnea masks will pay the government $34.8 million to settle allegations it paid kickbacks to medical equipment suppliers that bought its masks for patients.
The government alleged that Respironics, based in Murrysville, Pa., also known as Philips Respironics, violated the Anti-Kickback statute and the False Claims Act by providing free services to durable medical equipment suppliers in exchange for purchasing their masks.
Respironics, owned by Royal Philips, allegedly gave the companies free call center services to help patients order more supplies as long as they used Respironics' masks. If the companies' patients used masks made by competitors, then Respironics allegedly charged them monthly fees for the call center and other services, according to the U.S. Justice Department.
Respironics spokeswoman Alicia Cafardi said Wednesday that the company still believes it offered a valid bundled discount of Respironics' masks and resupply services under certain safe harbors, or exceptions, to the law.
“Respironics believes this settlement is the right thing for the company, its customers and its employees,” Cafardi said in a statement. “Respironics is proud of its commitment to compliance and has worked diligently to comply with the changing healthcare rules and laws.”
A whistle-blower who worked for numerous durable medical equipment companies, Dr. Gibran Ameer, brought the original lawsuit. Whistle-blowers are entitled to a portion of money the government recovers in False Claims Act lawsuits. Ameer will receive $5.38 million.