3 orthopedic clinics to pay $2.39M to settle False Claims Act allegations: 5 things to know

Practice Management

Three orthopedic clinics will pay a total of $2.39 million to settle federal and state False Claims Act allegations, according to KRCRTV.com.

The involved clinics include:


• Chico-based Orthopedic Associates of Northern California — $815,794
• Redlands, Calif.-based San Bernardino Medical Orthopaedic Group, DBA Arrowhead Orthopaedics — $971,903
• Reno (Nev.) Orthopaedic Clinic — $602,335


Here are five things to know:


1. The three orthopedic clinics allegedly billed federal and state healthcare programs for re-imported osteoarthritis medications, called viscosupplements.


2. Allegedly, the clinics bought discounted viscosupplements that were re-imported from foreign countries. They then billed state and federal healthcare programs for reimbursements, even though the re-imported viscosupplements did not qualify as reimbursable.


3. The federal government claimed that since the products were re-imported, they could have been altered or stored inappropriately.


4. The lawsuit came to fruition after a senior musculoskeletal specialty manger at Sanofi S.A. — a manufacturer of viscosupplements — filed it via the False Claims Act.


5. The court has not yet determined any liability; the settlement is just based on allegations.


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