Respironics settles for $24M 

PITTBURGH – Philips Respironics has agreed to pay more than $24 million to resolve False Claims Act allegations that it misled federal health care programs by paying kickbacks to DME suppliers, the U.S. Department of Justice has announced. 

The settlement resolves allegations that Respironics caused DME suppliers to submit claims for ventilators, oxygen concentrators, CPAP and BiPAP machines, and other respiratory related medical equipment that were false because the company provided illegal inducements to the suppliers. Respironics allegedly gave suppliers prescribing data free of charge that could assist in their marketing efforts to physicians, according to the DOJ. 

Philips said in an email that it has agreed to settle the claim to avoid the required time, resources and expense of litigation, and that it is not acknowledging any alleged facts, liability or wrongdoing. 

“Settling this claim allows us to put this matter behind us and maintain our focus on our customers and the patients they serve,” said David Ferguson, business leader for Philips Respironics. “We maintain a comprehensive compliance program and we will work with the relevant authorities to satisfy the terms of the settlement. This agreement should have no impact on our customers or the patients they serve.” 

As part of the settlement, Respironics has entered into a five-year corporate integrity agreement with the U.S. Department of Health and Human Services and the Office of Inspector General that requires the company to implement and maintain a compliance program that includes, among other things, review of arrangements with federal resources and monitoring of its sales force.  

The settlement resolves a lawsuit originally brought by Jeremy Orling, a Respironics employee, under the qui tam or whistleblower provisions of the False Claims Act. He will receive approximately $4.3 million of the settlement amount.