Abbott Corporate Integrity Pact Ratchets-Up Scrutiny Of Nutrition Pump Sales
This article was originally published in The Gray Sheet
Executive Summary
Abbott's Ross Products unit will retain an independent review organization to oversee sales and marketing of enteral nutritional pumps and related disposables under a 1corporate integrity agreement between Abbott and the HHS Office of Inspector General
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Novartis settlement
Civil damages of $44.7 mil. will be paid by Novartis Nutrition to settle charges brought by the U.S. attorney's office in the Southern District of Illinois stemming from a Department of Justice investigation into marketing and pricing practices of the enteral pump industry, begun in the mid-1990s. Novartis affiliate OPI Properties' settlement includes a criminal plea and a $4.5 mil. fine. The investigation reportedly involved allegations of kickbacks in the form of discounted or free enteral pumps supplied in exchange for disposable pump set supply contracts with providers; charges for such pumps may have been passed on to Medicare and Medicaid. Competitor Abbott settled for more than $600 mil. in criminal and civil penalties in 2003 (1"The Gray Sheet" July 28, 2003, p. 7)...
Novartis settlement
Civil damages of $44.7 mil. will be paid by Novartis Nutrition to settle charges brought by the U.S. attorney's office in the Southern District of Illinois stemming from a Department of Justice investigation into marketing and pricing practices of the enteral pump industry, begun in the mid-1990s. Novartis affiliate OPI Properties' settlement includes a criminal plea and a $4.5 mil. fine. The investigation reportedly involved allegations of kickbacks in the form of discounted or free enteral pumps supplied in exchange for disposable pump set supply contracts with providers; charges for such pumps may have been passed on to Medicare and Medicaid. Competitor Abbott settled for more than $600 mil. in criminal and civil penalties in 2003 (1"The Gray Sheet" July 28, 2003, p. 7)...
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