Former Blackstone Medical regional manager Susan Hutcheson has brought a case against the company's sales representatives, alleging they provided compensation, prostitutes and strippers to spine surgeons who used Blackstone spinal implants, according to a BNet report.
Ms. Hutcheson alleges that the company dolled out $1,666-$8,000 monthly to spine surgeons who used their implants. The payments were recorded as compensation for recruitment in the company's medical advisory board. According to the report, company representatives allegedly hired hookers for surgeons and on another occasion accompanied customers to a strip club.
The initial district court trial judge at the district court ruled that Ms. Hutcheson didn't prove the stipends were kickbacks, as the surgeons didn't link any money they may have received from Blackstone to Medicare reimbursement claims. A federal appeals court recently ruled that trial judges were too strict in applying the false claims and anti-kickback statutes, according to the report.
Read the report on Blackstone Medical.
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Ms. Hutcheson alleges that the company dolled out $1,666-$8,000 monthly to spine surgeons who used their implants. The payments were recorded as compensation for recruitment in the company's medical advisory board. According to the report, company representatives allegedly hired hookers for surgeons and on another occasion accompanied customers to a strip club.
The initial district court trial judge at the district court ruled that Ms. Hutcheson didn't prove the stipends were kickbacks, as the surgeons didn't link any money they may have received from Blackstone to Medicare reimbursement claims. A federal appeals court recently ruled that trial judges were too strict in applying the false claims and anti-kickback statutes, according to the report.
Read the report on Blackstone Medical.
Related Articles on Medical Device Companies:
ReGen Sues FDA Over Rejection of Its Knee Repair Device
Orthovita Shareholders Sue to Prevent Stryker Takeover
Lawsuits Against DePuy's Pinnacle Hip Implant Consolidated in Texas