Coloplast Corp., a manufacturer of ostomy and continence care products, has agreed to pay $3.6 million to resolve allegations that Coloplast paid unlawful kickbacks to several medical suppliers to induce them to conduct promotional campaigns designed to refer individual users to Coloplast products. Coloplast’s promotional campaigns allegedly included kickbacks in the form of funding for cash incentives – sometimes known as “spiffs” – paid to the suppliers’ sales personnel to induce them to refer patients to Coloplast products.
“The payment of kickbacks to induce purchases of medical supplies undermines our federal health care programs, ultimately distorting consumer purchasing decisions, and increasing health care costs,” said United States Attorney Carmen M. Ortiz. “Investigating claims of misguided business practices, at the expense of patient health, will continue to be a top priority in our healthcare enforcement efforts.”
– read the statement from the Department of Justice, U.S. Attorney’s Office, District of Massachusetts
– here’s the Minneapolis Star Tribune story
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