A.G. Schneiderman Announces National Settlement With Medtronic For Medicaid Violations

Agreement Resolves Allegations Of Kickbacks To Induce Provider To Use Medtronic Pacemakers And Defibrillators

Schneiderman: Health Care Companies That Attempt To Improperly Influence Health Care Professionals Will Be Prosecuted

NEW YORK – Attorney General Eric T. Schneiderman today announced that 46 states and the District of Columbia have reach a settlement agreement with Minnesota-based company Medtronic to resolve claims under the False Claims Act that Medtronic improperly induced physicians to recommend Medtronic devices to treat cardiac rhythmic disease. New York led a national team composed of members from Oregon, Texas and California to negotiate the settlement. The federal government settled its matter in May of this year.

“Physicians should determine the best course of treatment for their patients based on sound medical judgment, not on any special treatment that they may receive from a manufacturer,” Attorney General Schneiderman said. “Such conduct puts patients at risk and unfairly impacts those companies that follow the law. My office will vigorously pursue health care companies that try to improperly influence health care professionals.”

The agreement requires Medtronic to pay the settling states $362,362, which will go to those states’ Medicaid programs. The matter was brought by a whistleblower, Adolfo Schroeder, and was filed in U.S. District Court for the Eastern District of California. The Attorney General would like to thank Mr. Schroeder for bringing this matter to the government’s attention. Under the terms of the agreement, the New York Medicaid Program will receive $67,369.31.

This settlement concludes the investigation concerning Medtronic based on the allegations brought by Mr. Schroeder. In 2012, the states and Medtronic entered into a settlement agreement in which Medtronic agreed to pay the states $844,800. In that matter, New York received $201,148.20. In addition to Mr. Schroeder, the Attorney General would like to thank the Department of Justice and the United States Attorney’s Office for the Eastern District of California.

The national team was led by Jay Speers, Counsel to the New York Medicaid Fraud Control Unit. Stacey Millis, Supervising Auditor Investigator, was the national analyst, assisted by Michael LaCasse, Chief Auditor for the Civil Enforcement Unit, and Matthew Tandle, Senior Special Auditor/Investigator. The Medicaid Fraud Control Unit is led by Acting Director Amy Held. The Criminal Justice Division is led by Executive Deputy Attorney General Kelly Donovan.

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