Merit Medical settles federal kickback allegations for $18M

Carly Behm -   Print  |

South Jordan, Utah-based Merit Medical Systems has agreed to pay $18 million to resolve kickback allegations, according to an Oct. 14 statement from the Department of Justice.

The medical device company allegedly paid physicians, medical practices and hospitals to encourage use of its products for uterine fibroid embolizations and other embolization procedures over a six-year scheme, the statement said. Despite claiming the payments were made to "increase awareness" of the treatments, the company allegedly only sent assistance to select providers.

"Merit Medical provided millions of dollars of advertising and other marketing support to healthcare providers to induce sales of its products," Assistant U.S. Attorney Rachael Honig said in a statement. "Unlawful kickbacks like these distort the market for medical devices upon which our healthcare system depends." 

On top of the settlement payment, Merit Medical must hire a compliance expert and an independent review organization as part of a five-year corporate integrity agreement, the statement said.

Read full details here.

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