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.)

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