On July 25, the U.S. Attorney’s Office for the District of Minnesota announced that Precision Lens, a seller of eye surgery products, agreed to pay $12 million to settle charges that it violated the False Claims Act and the Anti-Kickback Statute by making illegal kickback payments to ophthalmic surgeons.
The settlement resolves a qui tam whistleblower lawsuit filed by Kipp Fesenmaier. The False Claims Act’s qui tam provisions enable private citizens and private parties to file lawsuits on behalf of the government if they know of an individual or company defrauding the government. Qui tam whistleblowers are eligible to receive between 15 and 30% of the government’s recovery.
According to the government, Precision Lens paid kickbacks to ophthalmic surgeons “to induce their use of Precision Lens products in cataract surgeries reimbursed by Medicare.”
These kickbacks came “in the form of travel and entertainment, including high-end ski trips, fishing, golfing, hunting, sporting, and entertainment vacations, often at exclusive destinations,” the government alleges.
Fesenmaier’s whistleblower suit also resulted in a related 2017 settlement in which Sightpath Medical, Inc. agreed to pay more than $12 million to settle charges of paying illegal kickbacks.
“Medicare beneficiaries depend on their physicians to make decisions based on sound medical judgment,” said Assistant U.S. Attorney Chad Blumenfield. “Our office will take decisive action to address allegations that medical providers are receiving improper financial benefits that could influence medical decision making. We are grateful to our law enforcement partners for their excellent work in investigating this matter.”
In July 2023, a bipartisan group of senators introduced the False Claims Amendments Act of 2023, which address a few technical loopholes undermining the success of the FCA. The bill is widely supported by whistleblower advocates.
National Whistleblower Center (NWC) has issued an Action Alert calling on Congress to pass the bill.
Join NWC in Taking Action:
Demand that Congress strengthen the False Claims Act
Further Reading:
Bipartisan Legislation Unveiled to Strengthen False Claims Act