C.R. Bard, Inc., along with its affiliates Liberator Medical Supply, Inc., Liberator Holdings, and Rochester Medical Corporation, have agreed to a $17 million settlement. The agreement resolves allegations that the companies violated the False Claims Act and various state false claims act statutes. The allegations claim they provided free samples and discounts to persuade urology practice groups to use Bard’s prescription form for intermittent catheters.
Acting U.S. Attorney Richard S. Moultrie, Jr. stated, “The use of inducements to influence a physician’s medical decisions undermines the important physician-patient relationship and interferes with the goal of doing what is best for the patient.” Georgia Attorney General Chris Carr added, “Patients should be able to trust the recommendations they receive from their physician are what’s best for their health, not what’s financially beneficial to another provider.”
Kelly J. Blackmon from the U.S. Department of Health and Human Services Office of Inspector General commented on kickback schemes: “Our office will continue to collaborate with our law enforcement partners to safeguard federal health care programs.” FBI Atlanta's Acting Special Agent in Charge Sean Burke emphasized that illegal kickbacks undermine healthcare systems designed for patient benefit.
Jason Sargenski from the Department of Defense Office of Inspector General noted that this settlement sends a message against disregarding patient-centered care for personal gain.
The government alleges that between 2016 and February 2020, Bard's affiliates offered incentives like discounts and excessive free samples to urology practice groups. These incentives were allegedly aimed at encouraging these groups to adopt Bard's "Link" prescription form over others—a violation under the Anti-Kickback Statute.
Bard began marketing intermittent catheters in 2013 after acquiring Rochester Medical, Inc., which specializes in urological products. Intermittent catheters are prescribed by physicians for patients suffering from urinary retention.
After acquiring Liberator Medical and Liberator Holdings two years later, Bard reportedly used its Link prescription form more aggressively through its own subsidiary targeting Medicare and Medicaid beneficiaries.
The lawsuit was initiated by Dirk Etheridge under whistleblower provisions of the False Claims Act in the Northern District of Georgia (United States ex rel. Dirk Etheridge v. Liberator Medical Holdings). Mr. Etheridge will receive part of the settlement proceeds.
This case involved investigations by multiple agencies including the U.S. Attorney’s Office for Northern District of Georgia, HHS-OIG, FBI, Department of Defense OIG Defense Criminal Investigative Service (DCIS), among others.
Assistant U.S. Attorney Neeli Ben-David led this civil settlement alongside former Assistant U.S. Attorney Akash Desai and Georgia State Assistant Attorney General Sara Vann.
It's important to note that these resolved claims remain as allegations without any determination of liability being established yet.
For further details contact can be made via USAGAN.PressEmails@usdoj.gov or (404) 581-6016; more information is available at http://www.justice.gov/usao-ndga.