Posted by Kyle Beck.
A company who makes sleep apnea masks has “agreed to pay $34.8 million to settle claims” that say the company paid kickbacks to suppliers that sold its products. Philips Resprionics, Inc. offered free customer support through its medSage call center, while the company’s competitors had to pay for a call center. This act made it more likely that a company would buy from Philips Resprionics Inc, and because the masks can be covered by Medicare or Medicaid programs; this is considered a kickback. Benjamin Mizer of the Justice Department said, “Kickbacks ‘in any form to induce patient referrals threatens public confidence in the health care system.”
Suppliers who bought masks from Phillips Resprionics, Inc. saved “$11.88 per year for each patient that used a Respironics mask. A supplier that had 10,000 patient customers would save $118,800 annually.” The money received from the lawsuit will be divided between 3 groups. The whistleblower Dr. Gibran Ameer will receive $5.4 million, the federal government will receive$28.7 million, and state Medicaid programs will receive $660,000.
This is a good step towards fairness, because it makes sure that no one is taking advantage for people who have medical problems.
Kyle is an economics major in the Stillman School of Business, Seton Hall University, Class of 2018.