Device Maker NeuroMetrix to Pay $3.7M to Settle Kickback Allegations, Coding Fraud

Medical device maker NeuroMetrix has agreed to pay $3.7 million to settle federal allegations that it gave kickbacks to physicians, according to news releases from the U.S. Attorney’s Office and NeuroMetrix.

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NeuroMetrix paid physicians in the form of free boxes of disposable biosensors for use with the company’s NC-stat System to encourage the physicians to recommend the device to colleagues. NeuroMetrix also allegedly caused physicians to seek reimbursement using a higher valued CPT code under certain circumstances when physicians performed a nerve conduction study using the NC-stat System.

Of the $3.7 million, NeuroMetrix will pay $1.2 million as a criminal penalty after admitting that it provided the free biosensors; the remaining $2.5 million settles the kickback and fraudulent up-coding allegations.

Read the U.S. Attorney’s Office news release about the $3.7 million NeuroMetrix penalty.

Read the NeuroMetrix news release about the NeuroMetrix settlement.

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