Medtronic to Pay DOJ $23.5M to Settle Allegations that they Bought Doctors

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Washington, DC: A $23.5 million settlement has been agreed by Medtronic and the US Justice Department, which will effectively end investigations into allegations that the company paid doctors between $1,000 and $2,000 per patient to implant its pacemakers and defibrillators. The allegations arose out of two lawsuits pending in California and Minnesota

According to a Justice Department press release, Medtronic used the payments to entice doctors to use a their device over a competing device, and to persuade doctorsto be loyal to Medtronic for future cardiac procedures.

"Patients who rely on their healthcare providers to implant vital medical devices expect that those decisions will be made with the patients' best interests in mind," Tony West, assistant attorney general for the department's civil division, said in a press release. "Kickbacks, like those alleged here, distort sound medical judgments with financial incentives paid for by the taxpayers."

The Justice Department is also investigating allegations that doctors who received payments from Medtronic failed to report serious side effects associated with Medtronic's Infuse bone graft.