Stryker, former division settle false claims allegations

Medical technology provider Stryker Corp., along with former outpatient therapy division Physiotherapy Associates, have agreed to pay $16.6 million to settle allegations that they'd submitted false claims to federal healthcare programs. The settlement resulted from whistleblower suits filed by two private citizens, both former Physiotherapy employees, each of whom will receive $3 million from the settlement.

The U.S. Department of Justice had contended that Physiotherapy submitted false claims to Medicare, state Medicaid programs and the Department of Defense's TRICARE plan. It also said that Physiotherapy had retained reimbursements which were improperly paid, rather than refunding them. In addition to paying the fine, Physiotherapy will enter into a corporate integrity agreement with the HHS Office of Inspector General.

Physiotherapy was purchased from Stryker for $150 million in June, by Chicago's Water Street Healthcare Partners.

To learn more about the settlement:
- read this Memphis Business Journal piece

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