Merit Medical Settlement Agreement

Merit Medical, a global medical device company, has recently reached a settlement agreement with the United States Department of Justice (DOJ) over allegations of improper payments to healthcare professionals. The settlement, which includes a payment of $18 million, marks the end of a lengthy investigation into the company`s marketing practices.

The allegations against Merit Medical stem from a whistleblower lawsuit filed in 2016. The lawsuit claimed that the company offered kickbacks to hospitals and physicians in exchange for using their products. Specifically, the lawsuit alleged that Merit Medical paid doctors to attend educational events that were actually disguised sales pitches for their products.

According to the DOJ, Merit Medical`s marketing practices violated the Anti-Kickback Statute, which prohibits companies from offering remuneration to doctors and hospitals in exchange for referrals or in order to induce the purchase of their products.

As part of the settlement agreement, Merit Medical has admitted no wrongdoing but has agreed to a series of corrective measures. These measures include the implementation of a compliance program, the appointment of a compliance officer, and the development of a system to monitor and track its financial relationships with healthcare providers.

The settlement agreement is a reminder of the importance of transparency and compliance in the healthcare industry. Companies must be diligent in their marketing practices and avoid any behavior that could be seen as an attempt to influence the healthcare decisions of others. The consequences of violating the Anti-Kickback Statute can be significant, both in terms of financial penalties and damage to a company`s reputation.

In conclusion, the Merit Medical settlement agreement serves as a cautionary tale for companies in the healthcare industry. It underscores the importance of ethical business practices, compliance with regulations, and transparency in dealing with healthcare providers. As the DOJ continues to investigate and prosecute similar cases, it is essential that companies remain vigilant and ensure they are operating within the bounds of the law.