Texas orthopedic surgeon pays $300,000 to settle kickback allegations over 'medical directorship' arrangement


A Friendswood, Texas-based orthopedic surgeon will pay $300,000 to resolve False Claims Act allegations related to OK Compounding.

Four things to know:

1. The federal government accused Ian Reynolds, MD, of accepting illegal kickbacks from OK Compounding between April 2013 and September 2015. The company allegedly paid Dr. Reynolds kickbacks characterized as medical director fees for prescribing its pain creams as well as facilitating the sale and distribution of them.

2. Dr. Reynolds' settlement is the 12th settlement involving OK Compounding in the past year.

3. The federal government conducted an investigation into the physicians and healthcare providers that prescribed OK Compounding products, which led to this civil settlement.

4. There was not a determination of liability related to this settlement.

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