The Olympus Corporation of the Americas (OCA) has been found guilty of making illegal payments to doctors and hospitals in the United States as well as in Latin America. As a result, the largest distributor of endoscopes and other medical equipment in the country will pay $646 million for violating the Anti-Kickback Statute (AKS).The statute prohibits any payments from OCA that were meant to encourage purchases that were paid for by the health care programs. The charges and decision resulted from illegal payments to doctors and hospitals in violation of the AKS. The charges and the decision were the result of illegal payments to doctors and hospitals in violation of the AKS. For example:
- OCA held up a $50,000 research grant to one hospital until a second hospital agreed to buy Olympic equipment.
- OCA gave a $5,000 grant to a hospital to seal a $750,000 sale.
- After three doctors switched to Olympus from another competitor, they were given a free trip to Japan.
In response to the charges and decision, OCA accepted a three-year deferred prosecution agreement (DFA). The company will not be convicted of the charge if it obeys the reform and compliance requirements. It will, however, be required to pay the combined criminal charges plus the money to settle the figure owed under the False Claims Acts. The total amount is the highest ever paid in the United States involving the AKS and a company such as OCA.
In addition to those changes, OCA must make some internal changes as well, such as:
- OCA must develop a more effective program for dealing with doctors and hospitals.
- OCA must establish a hotline to allow those who work for or deal with the company to report wrongdoing.
An independent monitor was selected to oversee OCA’s compliance with the new restrictions and was put in place for three years.
Since that time, the process of working against health care fraud has been reorganized in New Jersey. More than a billion dollars has been recovered in various settlements.
Solving the problems that often occur when many people as well as a great deal of money are involved requires expertise, patience, and a strong knowledge of many fields such as this case involving medical corporations. The attorneys at the Law Offices of Sadaka Associates have expertise and are tireless fighters in medically complicated cases. If you feel that you have been harmed by a pharmaceutical, vaccine, or medical device, contact the Law Offices of Sadaka Associates. They have both the knowledge and the experience handle your case.
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