Medical Device Distributor Allegedly Violates Anti-Kickback Statutes

This anti fraud case involves a medical device distributor and a hospital in New Mexico which allegedly violated Medicare anti-kickback statutes, as well as industry ethical standards. The distributor in question employeed a woman working at a medical center that the medical device firm sold to, and gave her a commission for every device sold to the medical center. Allegedly, this employee was also involved in a romantic relationship with one of the hospital’s general surgeons, who frequently purchased equipment from the defendant firm. Representatives from other medical device firms made note of this conduct and reported the issue. It was alleged that the payments received by the hospital’s employee were unethical.

Question(s) For Expert Witness

1. Please briefly describe your work with the AdvaMed Code of Ethics and your work with anti-kickback statutes in the healthcare industry.

Expert Witness Response E-056921

It appears that this rep crossed the line and his/her misconduct influenced the judgement of the surgeon, which is a clear violation of the AdvaMed code. The act of hiring an employee of the hospital and paying commissions for sales he/she makes appears to be in violation of anti-kickback regulations. I have worked for two medical device companies that were founding members of AdvaMed and have completed annual training on AdvaMed and Medicare anti-kickback for the past 10 years. I understand the do's and don't with regards to these codes and laws.