- Koninklijke Philips NV PHG has agreed to pay over $24 million to resolve alleged false claims over respiratory-related medical equipment, said the U.S. Justice Department.
- The subsidiary, Philips RS North America LLC, formerly Respironics Inc, resolved allegations that it misled federal healthcare programs by paying kickbacks to durable medical equipment suppliers, the Justice Department said in a statement.
- Respironics allegedly gave the suppliers physician prescribing data free of charge that could assist their marketing efforts to physicians, the Justice Department said.
- Also see: Philips Recalls Some Ventilators Over Contaminated Plastic Component.
- "Paying illegal remuneration to induce patient referrals undermines the integrity of our nation's healthcare system," said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department's civil division.
- Respironics also entered into a five-year agreement with the U.S. Department of Health and Human Services, Office of the Inspector General to implement a compliance program that includes reviewing arrangements with referral sources and monitoring Respironics' sales force.
- Price Action: PHG shares are down 0.49% at $16.33 during the premarket session on the last check Friday.
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