Whistleblower Accuses Three Major Device Firms in Kickback Scheme

A whistleblower has accused Boston Scientific Corp., St. Jude Medical and Medtronic Inc., as well as three other companies, of offering illegal kickbacks to urge doctors to use their medical devices for off-label use, according to documents unsealed in Houston, Texas, federal court.

A former Boston Scientific employee who was not named in the court papers made the allegations, and the government has until Aug. 21 to decide whether to join the lawsuit.

A spokesman for Boston Scientific said the company sold its ablation units in 2006 and 2007 and no longer marketed the devices.

The complaints allege that the medical device makers urged doctors to conduct more time-consuming and costly procedures in hospitals rather than less-invasive ones. As a result, Medicare was overbilled, according to the court documents.

The whistleblower also alleges that the companies “offered the surgeons kickbacks in the form of free advertising, press and referral services to bring in more patients and business.”

St. Jude Medical said the lawsuit was connected with an investigation by the Justice Department, which the company first disclosed last October, and a spokesman for Medtronic said in a statement it disclosed the probe in March.