Last month, the U.S. Department of Justice settled False Claims Act claims against Abbott Laboratories over allegations that Abbott Laboratories had been engaging in a practice of paying prominent physicians for speaking engagements and other learning assignments with the expectation that, in return, the physicians would arrange for their affiliated hospitals to purchase Abbott Laboratories’ carotid, biliary and peripheral vascular products. The federal government viewed this relationship and payment structure as an illegal kickback, and alleged that Abbott Laboratories had violated the Anti-Kickback Statute. Abbott Laboratories agreed to pay $5.5 million to resolve the claims. The suit was instituted by two whistle-blowing former employees of Abbott Laboratories, under the qui tam procedures of the False Claims Act.
Frier Levitt consistently advises clients on the propriety of financial relationships with referring physicians as well as the federal “Safe Harbors.” Contact us for advice on whether your healthcare entity is maintaining proper relationships with referring practitioners under federal and state law.
