Essilor Pays $16.4M to Settle Kickback Allegations

Essilor (Essilor International, Essilor of America Inc., Essilor Laboratories of America Inc. and Essilor Instruments USA) has agreed to pay $16.4 million to settle allegations that the firm violated the False Claims Act.
 
The U.S. DOJ alleged between 2011 and 2016 Essilor offered or paid remuneration to optometrists and ophthalmologists to induce them to order and buy Essilor products for patients—including Medicare and Medicaid beneficiaries—violating the Anti-Kickback Statute.
 
“When medical equipment manufacturers provide kickbacks to referring providers, it can compromise the integrity of medical decision-making,” Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, told the press. “The department will continue to pursue violations of the Anti-Kickback Statute to ensure that patient care is not influenced by improper financial incentives.”
 
As part of the settlement, Essilor entered a five-year Corporate Integrity Agreement (CIA) with HHS-OIG. The agreement requires Essilor to hire an independent review firm to review systems, policies, processes, and procedures to make sure any discounts, rebates, or other price reductions comply with the Anti-Kickback Statute.
 
Essilor must also implement a new written review and approval process to confirm current and new discount arrangements also comply.
 
“The Anti-Kickback Statute was designed to ensure doctors make medical decisions with only their patients’ best interests in mind,” said U.S. Attorney Chad Meacham of the Northern District of Texas. “We are pleased to see Essilor taking financial responsibility for their conduct.”
 
The civil settlement resolved claims brought on by whistleblower provisions of the False Claims Act, by relators and former Essilor district sales managers Laura Thompson, Lisa Brez, and Christie Rudolph.