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Physician, devicemaker to pay $4.2M to resolve kickback claims: 5 details

The owner of an Atlanta-based medical group and his practice will pay millions to resolve kickback allegations brought by a former employed physician, according to a Dec. 8 Justice Department statement.

Five notes:

1. Jeffrey Gallups, MD, the founder, owner, medical director and past CEO of Milton Hall Surgical Associates, was accused by the whistleblower of accepting cash payments, all-expense paid trips and other remuneration in exchange for requiring the 12 to 18 physicians employed by his group to use Entellus products. Dr. Gallups also served as medical director of Entellus, a device company.

2. From 2014 to 2018, Dr. Gallups allegedly increased the volume of sinus surgeries performed by physicians in his group to boost Entellus supply purchases. Stryker acquired Entellus in December 2017 and decided not to renew the consulting agreement with Dr. Gallups. Stryker agreed to pay $1.2 million to resolve claims related to the alleged kickback scheme.

3. The whistleblower also alleged Dr. Gallups required Milton Hall physicians to order toxicology and genetic tests from NextHealth, a medical testing lab, and then received 50 percent of the revenue generated from the tests. Milton Hall physicians objected to the medical necessity of the tests, and Dr. Gallups ended the arrangement with NextHealth after one year.

4. Dr. Gallups and Milton Hall agreed to pay $3 million to resolve the claims.

5. Myron Jones, MD, the former employed physician who blew the whistle on Dr. Gallups, received around $614,000 of the settlement.

 

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