Estech was accused of marketing its devices to treat atrial fibrillation, which was not an approved use by the U.S. Food and Drug Administration. Additionally, the company was accused of recommending more costly heart surgeries using its devices when less-expensive options were available and advising hospitals to code surgical procedures with its devices to boost Medicare reimbursements, according to the report.
Estech was also accused of paying kickbacks to providers who used their devices.
The charges were filed in a Texas federal court under the Federal False Claims Act “qui tam” provisions, which allows private citizens sue on behalf of the federal government. According to the report, the person who filed the claim against Estech will receive $210,000 of the settlement.
Read the Tribune’s report about the Estech False Claims suit settlement.
