Settlement reached with Utah-based medical device manufacturer over alleged kickback scheme

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INDIANAPOLIS — Indiana has reached a settlement with a Utah-based medical device manufactorer over allegations that it offered kickbacks to healthcare providers to induce them to buy its devices.

The settlement resolves allegations that Merit Medical Systems offered healthcare providers millions of dollars through its local advertising program from September 1, 2010 through March 31, 2017.

The company allegedly used this program to reward its high-volume customers with patient referrals and financial advertising support. However, the customers would be removed from the program if they didn’t convert to, or increase their use of, the company’s devices.

“Paying unlawful kickbacks to doctors so they use certain products for procedures undermines the integrity of Indiana’s health care programs,” Attorney General Hill said. “Hoosiers – especially the most vulnerable Hoosiers – deserve to know that their health care professionals are selecting devices based solely on quality, and not based on kickbacks.”

In the settlement, Merit agreed to pay the states and the federal government $18 million – $5.58 million of which will go to Medicaid programs. As part of the settlement, Indiana Medicaid will receive $285,584 in restitution and other recoveries.

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