Personal Injury Law

Illinois Medical Lawsuit Involving Kickbacks and Illegal Deals

By Steven M. Levin and John J. Perconti

An Illinois medical company is set to pay $85 million as part of an Illinois medical lawsuit settlement, reported Reuters last week. The Illinois lawsuit stems from allegations that the company, Medline Industries Inc., paid illegal kickbacks to different hospitals and businesses that buy its supplies. The business makes and sells surgical and medical products like exam gloves, anesthesia and wound treatments.

These activities are illegal, because the supplies themselves are paid for by Medicare and Medicaid. The violations are one of the largest yet recorded under the False Claims Act led by non-government advocates?federal legislation that seeks to ban these unfair, dangerous practices. The law seeks to ensure that all those working in the industry conduct business on a level playing field. Hidden payments?ultimately made with taxpayer funds?create a skewed, unfair competitive market. Medical patients are hurt in the long run.

According to the suit, the company allegedly offered the kickback cash payments as a way to earning new business. This was accomplished in a variety of forms: falsely labeling the payments as ?rebates,? claimed charitable donations, junkets, and expensive gifts. The activities were claimed to have been ongoing for at least five years, but potentially longer.

Full post as published by Illinois Medical Malpractice Blog on March 19, 2011 (boomark / email).