The US Department of Justice is investigating allegations that Medtronic, Inc. paid illegal kickbacks to physicians. Jim McCartney of Pioneer Press contacted Mathias Consulting and wrote this report published Sept 9:

“Unlike the government’s criminal sting operation, the allegation against Medtronic was apparently brought by an individual or individuals as part of a “civil qui tam complaint brought pursuant to the federal False Claims Act,” according to the company’s disclosure.

The qui tam provision allows private individuals to bring civil cases against entities that have submitted false claims to the government. The person who brings the case to the government’s attention (and their lawyers) can win a substantial portion of the final settlement or judgment, said Robin Mathias, a health care fraud consultant based in Santa Rosa, Calif.

There has been an increased number of probes into health care fraud, especially involving the Medicare system, Mathias said. The qui tam provision has been ‘a great incentive for people to turn in their bosses for committing fraud’ and has been used extensively in Medicaid and Medicare fraud cases, she said. Most states now have hotlines set up for reporting Medicaid fraud. ”

“Even so, the vast majority of fraud is not caught,” Mathias said.

Read the article at the Pioneer Press Medtronic division accused of payoffs