Bayer settles 'cash for patients' allegations for $97.5 million

Bayer HealthCare has agreed to pay $97.5 million to settle charges that its diabetes care division paid suppliers to move patients over to Bayer products from competing ones. The company admitted no liability in the settlement, which accuses it of striking such deals with 11 direct-to-patient suppliers.

The suppliers allegedly received kickbacks, disguised as advertising, based on the number of patients converting to Bayer diabetes products such as glucose monitors and test strips between 1998 and 2003. Suppliers named in the allegations included Liberty Medical Supply of Port St. Lucie, FL, which got more than $2.5 million in such payments, according to a U.S. Department of Justice news release.

Under the terms of the deal with the DoJ, Bayer has agreed to a corporate integrity agreement with the HHS IG's office, as well making the payment (with interest). The deal resolves false claims to Medicare, which allegedly were made as part of the scheme.

To learn more about the settlement:
- read this Modern Healthcare piece (reg. req.)

Related Articles:
LA hospital settles with DoJ for $1.9M
Department of Justice faces 500-case healthcare whistle-blower backlog
Officials arrest 18 in Los Angeles for $33M Medicare fraud
DoJ joins whistleblower suit against McKesson

Suggested Articles

The profit margins and management of Community Health Group raise questions about oversight of managed care insurers.

Financial experts are warning practices about the pitfalls of promoting medical credit cards to their patients.

A proposed rule issued by HHS on Tuesday would expand short-term coverage, a move Seema Verma said will have "virtually no impact" on ACA premiums.