Four companies that produce most of the hip and knee replacements used in the U.S. recently reached a settlement over health care fraud charges filed against them by the federal government. The settlement, for $311 million, was the conclusion of a U.S. Department of Justice criminal investigation in which the companies were found to have paid consulting fees and given gratuities to doctors. A fifth subject of the government investigation cooperated early and ultimately paid the government no money.

As the attached recent article from Modern Healthcare notes, quoting Hinshaw partner Dan Purdom, the government's success will only cause prosecutors (and private litigants, who are permitted under federal law to share in the proceeds of federal funds recovered) to dig deeper into suspected business practices. Prior to joining Hinshaw, Dan served as an Assistant U.S. Attorney and authored the U.S. Department of Justice’s manual on prosecuting health care fraud. He continues to lecture frequently on health care fraud issues. The other attorneys in Hinshaw's White Collar Crime Specialty Group also have significant experience in prosecuting and defending alleged health care fraud.

Hospitals, doctors, insurers and medical device manufacturers who become aware of business relationships between medical equipment manufacturers and providers that may be subject to governmental scrutiny should consult promptly with one of the attorneys listed below.

This alert is provided to you by Hinshaw's White Collar Crime group. Please forward this along to your clients and contacts who may be interested in receiving information on recent legal developments provided by our group. If you have any comments or questions concerning this alert, please contact one of the following leaders in the group: Dan Purdom, Joel Bertocchi , Maranda Fritz, Bill Roberts, Lee Smith, or Vince Biskupic.

This alert has been prepared by Hinshaw & Culbertson LLP to provide information on recent legal developments of interest to our readers. It is not intended to provide legal advice for a specific situation or to create an attorney-client relationship.