Arthrex to pay $16 million to settle kickback allegations

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 627 Articles
A growth-driven and strategic executive, Peter Coffaro commands more than 20 years of progressive management success within the orthopedic industry. Recognized by MedReps.com and the World Journal of Orthopedics as one of the top medical sales influencers in the industry; he has 10 years of combined sales management experience and has held positions as a Director, General Manager and Distributor. Peter has worked for some of the top orthopedic companies in the world - Zimmer, DePuy and Stryker. He is also the founder of OrthoFeed: a popular blog that covers orthopedic news and emerging medical technologies. Peter is a three-time Hall of Fame award winner at Johnson and Johnson and has an extensive background in organizational development, business development, sales management, digital marketing and professional education. Peter holds a B.S. degree in Biology from Northern Illinois University.

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