Medtronic Spine settles false claims charges for $75M

Fri, 23 May 2008 06:59:56 -0400

A subsidiary of Medtronic Spine agreed this week to pay the federal government $75 million to settle allegations that it caused submission of false claims to Medicare by a subsidiary. The allegations concerned Kyphon Inc., bought by Medtronic Spine in November 2007 for $3.9 billion after whistleblower allegations had already been made. In addition to the settlement,
Kyphon has entered into a Corporate Integrity Agreement with HHS's Office of Inspector General.

Kyphon was accused of submitting fraudulent claims for kyphoplasty procedures, minimally invasive surgeries used to treat compression fractures of the spine caused by osteoporosis, cancer or benign lesions. According to the allegations made by whistleblowers, Kyphon engaged in a marketing scheme that caused some hospitals to bill Medicare for inpatient kyphoplasties when cheaper outpatient procedures would have been clinically appropriate. The allegations came from two former Kyphon employees, who under the False Claims Act will receive a total of $14.9 million for having reported the allegations.

To learn more about the settlement:
- read this article from Business First of Buffalo

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Studies show problems with four big-name drugs

Tue, 29 Apr 2008 06:59:56 -0400

It looks like yet another set of popular drugs are facing allegations that they pose safety risks. Drugs named this week in unfavorable studies include Fosamax, which may create heart problems for women who take it for osteoporosis and epilepsy med Dilantin, which may put young women at higher risk of developing osteoporosis. Another study concludes that diabetes drugs Avandia and Actos double or triple the odds of non-spinal fractures, particularly among patients who took the drugs for a year or more. Particularly given other drug safety controversies still very much in the public eye, this can't be giving pharma marketers a warm and fuzzy feeling.

To find out more about the studies:
- read this FiercePharma item

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Osteoporosis

Medtronic Spine settles false claims charges for $75M

Studies show problems with four big-name drugs