Resmed Corporate Integrity Agreement

This reflects what was expected and is consistent with the preliminary agreement the company reached with the DOJ during the summer of 2019. As we wrote at the time, “while some limited product wearing services may not violate the AKS [anti-kickback] status, compliance experts should not conclude that product wearing services generally fall into some sort of compliance safe harbor under the 2003 guidelines.” The agreement settles five complaints filed by whistleblowers under the provisions of qui Tam of the False Claims Act. These whistleblowers will together receive an estimated $6.2 million share in the transaction. As part of the transaction, ResMed has entered into a Corporate Integrity Agreement (CIA) that will insininsind it to additional monitoring and price controls. “The government claimed that ResMed provided free goods and services to companies to sell more medical equipment purchased by taxpayers,” said Derrick L. Jackson, special agent in charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “The OIG`s integrity agreement with ResMed is intended to ensure that such behaviour does not recur.” Recently, ResMed Corp. agreed to pay more than US$37.5 million to remedy alleged violations of the False Claims Act for paying bribes to durable medical equipment (EMR) suppliers, sleep labs and other healthcare providers, which is contrary to anti-kickback status. They also entered into a corporate integrity agreement. The agreement resolves five complaints originally filed by whistleblowers in accordance with the provisions of qui Tam or False Claims whistleblowers. The False Claims Act allows individuals, aware of fraud against the government, to file a complaint on behalf of the United States and participate in the recovery. The whistleblowers will together receive a share of approximately $6.2 million in the transaction.

The agreement also provides for penalties for late submissions, errors and omissions, and compliance violations. The terms of the deal were published four months ago in ResMed`s profit and loss account for Q4FY19, David Pendarvis, ResMed`s Chief Administrative Officer and Global General Counsel, said in the statement. . . .

Comments are closed.