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ResMed on the Hook for $39.5 Million for Alleged Kickbacks


  • Forty-four AGs, including Kentucky AG Daniel Cameron, North Carolina AG Josh Stein, and Massachusetts AG Maura Healey, as well as the U.S. Department of Justice (“U.S. DOJ”), reached a settlement with medical equipment manufacturer ResMed Corp. (“ResMed”) to resolve allegations that the company provided illegal kickbacks to medical equipment suppliers and health care providers in violation of state and federal false claims statutes.
  • According to the U.S. DOJ, the settlement was the result of coordinated investigation by a team from the National Association of Medicaid Fraud Control Units and four U.S. Attorneys’ offices, among others, into allegations that ResMed violated the law by providing free sleep apnea equipment to medical equipment suppliers and health care providers in exchange for patient referrals, resulting in the submission of false claims for payment to state Medicaid programs.
  • Under the terms of the settlement, ResMed is required to pay $39.5 million, of which $4.47 million will go to state Medicaid programs.