History
2021: Information on physician bribery
At the end of September 2021, information appeared that in the company SpineFrontier, which is engaged in the production of spinal devices, two of its top managers were charged with implementing a scheme to bribe surgeons for using the company's products on the market.
According to court documents, the CEO and CFO of SpineFrontier are accused of conspiring to pay large bribes disguised as consulting services to surgeons in exchange for surgeons using the manufacturer's products.
Authorities say the company SpineFrontier said it pays surgeons $250 to $1,000 an hour for consultations, but actually bribed surgeons to actively use the products SpineFrontier and recommend it to their patients. Also, surgeons used the products in their surgeries paid for by federal health programs like Medicare and Medicaid. According to the indictment, surgeons accepted from $32 thousand to $978 thousand as improper payments. According to prosecutors, they often determined how much to pay doctors, based on the number of procedures they performed and the amount of money that these procedures brought to the company.
Rollback measures pollute federal health programs and use patients' needs for financial gain. Medical equipment manufacturers must play by the rules, and we will continue to prosecute those who do not, regardless of how their corruption hides, "said Acting US Attorney for the District of Massachusetts Nathaniel Mendell. |
According to the indictment, SpineFrontier executives created a separate company in part to evade the requirements for device manufacturers to report payments to surgeons to the government. Some surgeons were told they could bill for more hours of consultations if they used more expensive SpineFrontier products, officials said.[1]