Ryan K. Buchanan, U.S. Attorney | U.S. Attorney for the Northern District of Georgia
C.R. Bard, Inc., along with its affiliates Liberator Medical Supply, Inc., Liberator Holdings, and Rochester Medical Corporation, has agreed to pay $17 million to settle allegations of violating the False Claims Act. The allegations involve providing free samples and discounts to urology practice groups to encourage the use of Bard's prescription form for intermittent catheters.
Acting U.S. Attorney Richard S. Moultrie, Jr. stated, "The use of inducements to influence a physician’s medical decisions undermines the important physician-patient relationship and interferes with the goal of doing what is best for the patient." Georgia Attorney General Chris Carr added, "Patients should be able to trust the recommendations they receive from their physician are what’s best for their health, not what’s financially beneficial to another provider."
The U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) also commented on the case. Special Agent in Charge Kelly J. Blackmon said, "Kickback schemes undermine the trust patients place in our health care system." Similarly, Sean Burke from FBI Atlanta noted that illegal kickbacks disrupt healthcare systems designed for patient welfare.
Jason Sargenski from the Department of Defense Office of Inspector General highlighted concerns regarding TRICARE: "This settlement sends a strong message to healthcare practitioners who blatantly disregard patient-centered care for their own personal enrichment."
The government claims that between 2016 and February 2020, Bard's affiliates provided incentives like discounts and free samples to persuade urology groups to adopt Bard's "Link" prescription form for catheters. This practice allegedly violated the Anti-Kickback Statute.
Bard began marketing intermittent catheters in 2013 after acquiring Rochester Medical, Inc., a supplier of urological products. Following this acquisition, Bard reportedly used discounts and free samples as leverage with urology practices.
In 2015, Bard acquired Liberator Medical and Liberator Holdings to establish its own subsidiary for selling intermittent catheters directly to Medicare and Medicaid beneficiaries. Allegations suggest that Bard encouraged prescriptions through Liberator Medical rather than other suppliers using the Link form.
These allegations were brought forward by Dirk Etheridge under whistleblower provisions in a lawsuit filed in Georgia. Etheridge will receive a portion of the settlement.
The investigation involved multiple agencies including the U.S. Attorney’s Office for Northern District of Georgia and various inspector general offices.
Assistant U.S. Attorney Neeli Ben-David led the civil settlement efforts alongside former Assistant U.S. Attorney Akash Desai and Georgia State Assistant Attorney General Sara Vann.
It is important to note that these resolved claims are only allegations without any determination of liability made against C.R. Bard or its affiliates.
For further details contact U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.
