C.R. Bard to Pay $17M to Settle Allegations of Kickback Scheme Violations
C.R. Bard, Inc. and its affiliates—including Liberator Medical Supply, Inc., Liberator Holdings, and Rochester Medical Corporation—have agreed to pay $17 million to settle allegations of violating the False Claims Act and various state false claims act statutes by providing inducements to urology practice groups to encourage them to use Bard’s prescription form for intermittent catheters.
The settlement stems from allegations that, between 2016 and February 2020, the companies provided excessive free samples, discounts, and cost savings for in-office urological supplies to persuade urology practice groups to use Bard’s “Link” prescription form when prescribing intermittent catheters to patients. The provision of such inducements violates the Anti-Kickback Statute, which prohibits offering any form of remuneration to encourage healthcare providers to prescribe specific products.
The investigation uncovered that, after Bard’s 2013 acquisition of Rochester Medical, its sales representatives began offering these financial incentives to urology practices in exchange for the use of the Link prescription form. This form, which listed Bard’s intermittent catheters, was designed to persuade physicians to prescribe Bard’s products over competitors’. Following Bard’s acquisition of Liberator Medical and Liberator Holdings, the scheme allegedly expanded to encourage practices to direct prescriptions to Liberator Medical for Medicaid and Medicare beneficiaries.
Acting U.S. Attorney Richard S. Moultrie, Jr. emphasized the importance of ensuring physicians’ medical decisions are driven by patient care, not financial incentives. Georgia Attorney General Chris Carr reiterated the state’s commitment to combatting healthcare fraud and safeguarding taxpayer dollars.
The case was initiated by a lawsuit filed by Dirk Etheridge, a former employee of 180 Medical, who served as a whistleblower under the qui tam provisions of the False Claims Act. This provision allows private parties to file claims on behalf of the government and potentially receive a portion of the recovery. Etheridge is set to receive a share of the $17 million settlement.
The case was investigated by several agencies, including the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), the FBI, the Department of Defense Office of Inspector General (DoD OIG), and the Georgia State Attorney General’s Medicaid Fraud Division.
The settlement resolves allegations, but it is not an admission of liability by Bard. The lawsuit, filed in the Northern District of Georgia under case number 1:17-cv-05187-LMM, was investigated and handled by Assistant U.S. Attorneys Neeli Ben-David and Akash Desai, along with Georgia State Assistant Attorney General Sara Vann.
The settlement proves the continued efforts by federal and state authorities to prevent kickback schemes that undermine trust in the healthcare system and exploit federal health care programs such as Medicare and Medicaid.
