Arthrex to pay $16 million to settle kickback allegations

November 9, 2021 Legal, Medical Devices, Orthopedics, Sports Medicine

Medical device company Arthrex agreed to pay $16 million to settle allegations that it paid a doctor to boost sales, the U.S. Justice Department announced Monday.

The privately held company allegedly paid Colorado-based orthopedic surgeon Dr. Peter Millett millions of dollars under the guise of royalty payments. While Arthrex and Millett have had a royalty agreement since 2010 for his help in developing SutureBridge and SpeedBridge kits, federal authorities contend that the company paid him royalties that were higher than the typical rate to get him to use and recommend its products. A whistleblower alleged that this caused other providers to submit false claims, violating the False Claims Act and anti-kickback statutes.

“Paying bribes to physicians to distort their medical decision-making corrupts the healthcare system,” said Acting U.S. Attorney Nathaniel Mendell said in a news release.

Arthrex, which entered into a five-year corporate integrity agreement with HHS’ Office of Inspector General, did not immediately reply to requests for comment.

Millett denied any wrongdoing, his lawyer Marc Kasowitz of Kasowitz, Benson Torres LLP said.

By Alex Kacik | Modern Healthcare

Image Credit: MH Illustration / Getty Images

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About Peter Coffaro 504 Articles

Peter Coffaro is a growth-driven and strategic executive with over 25 years of progressive management success in the medical device industry. With a proven track record and recognized expertise, Peter has established himself as one of the top influencers in medical sales, as acknowledged by prestigious publications such as the World Journal of Orthopedics, Exponential Healthtech, and MedReps.com. Throughout his career, Peter has accumulated 10 years of combined sales management experience, excelling in various roles including Director, General Manager, Distributor, and Vice President. He has worked for industry-leading orthopedic companies such as Zimmer, DePuy, and Stryker, solidifying his deep knowledge and network within the field. Peter’s passion for innovation and emerging technologies led him to found OrthoFeed, an award-winning blog covering digital orthopedic news and emerging medical technologies. Through this platform, he stays at the forefront of the industry and contributes to the dissemination of valuable insights. Peter is a three-time Hall of Fame award winner at Johnson and Johnson, demonstrating his exceptional contributions and impact on the organization. His expertise extends to areas such as organizational development, business development, sales management, digital marketing, and professional education. Peter earned a B.S. degree in Biology and Chemistry from Northern Illinois University, further complementing his comprehensive understanding of the medical field. With his wealth of experience, strategic mindset, and dedication to advancing healthcare, Peter Coffaro is a valuable asset and leader in the medical device industry.