Ryan K. Buchanan, U.S. Attorney | U.S. Attorney for the Northern District of Georgia
C.R. Bard, Inc., along with its affiliates Liberator Medical Supply, Inc., Liberator Holdings, and Rochester Medical Corporation, has agreed to a $17 million settlement over allegations of violating the False Claims Act and related state statutes. The allegations suggest that Bard provided free samples and discounts to persuade urology practice groups to utilize Bard's prescription form for intermittent catheters.
Acting U.S. Attorney Richard S. Moultrie, Jr. stated, "The use of inducements to influence a physician’s medical decisions undermines the important physician-patient relationship and interferes with the goal of doing what is best for the patient." He emphasized the office's commitment to working with federal and state partners to hold companies accountable for violations of federal law.
Georgia Attorney General Chris Carr commented on the matter: "Patients should be able to trust the recommendations they receive from their physician are what’s best for their health, not what’s financially beneficial to another provider."
Kelly J. Blackmon from the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) remarked on kickback schemes: "Our office will continue to collaborate with our law enforcement partners to safeguard federal health care programs."
Sean Burke, Acting Special Agent in Charge of FBI Atlanta, added that illegal kickbacks undermine healthcare systems designed for patient-centered decisions.
Special Agent in Charge Jason Sargenski from the Department of Defense Office of Inspector General expressed concern over potential harm to TRICARE, highlighting ongoing investigations into healthcare fraud affecting the Department of Defense.
The government alleges that between 2016 and February 2020, Bard's affiliates offered incentives like discounts and free samples to encourage urology groups to use Bard's "Link" prescription form for prescribing intermittent catheters. Such practices are prohibited under the Anti-Kickback Statute.
Bard began marketing these catheters in 2013 after acquiring Rochester Medical, Inc., followed by further acquisitions aimed at selling directly through Medicare and Medicaid beneficiaries via Liberator Medical.
These allegations were initially brought forward by Dirk Etheridge under qui tam provisions of the False Claims Act. As part of this legal process, Mr. Etheridge will receive a portion of the settlement.
Investigations were conducted by multiple entities including the U.S. Attorney’s Office for the Northern District of Georgia and various departments within HHS-OIG and FBI.
Assistant U.S. Attorney Neeli Ben-David was involved in reaching this civil settlement alongside other legal representatives from relevant offices.
It's noted that these claims remain as allegations without any determination of liability.
For additional details or inquiries, contact information for the U.S. Attorney’s Public Affairs Office is provided at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.
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