Olympus agrees to $1 Million+ settlement with California
November 13, 2017
• Settles case of alleged kickbacks
• “Patients have a right to trust their medical care is based on their treatment needs alone, and not illegal kickbacks”
California has reached a $1.075 million settlement with medical supply company Olympus Corporation of the Americas over alleged illegal kickbacks to physicians, hospital employees and representatives to get them to buy Olympus medical equipment and supplies, according to state Insurance Commissioner Dave Jones.
"Patients have a right to trust their medical care is based on their treatment needs alone, and not illegal kickbacks to medical providers," says Mr. Jones. "Medical professionals should be free from outside influences and inducements when making treatment decisions."
Providing inducements to medical professionals, such as cash or gifts to prescribe or use a specific medication, equipment or supplies, is illegal under the California Insurance Frauds Prevention Act .
The settlement addresses allegations that Olympus violated the law in connection with the sale and marketing of the TJF-Q180V duodenoscopy. For example, the Commissioner alleged that Olympus failed to obtain proper approvals for modifications made to the TJF-Q180V and failed to disclose an alleged defect in its closed-channel duodenoscopes.
As part of a previous settlement with the federal government, Olympus agreed to change their business and marketing practices and made limited admissions of wrongdoing regarding kickbacks.