Medical device maker EndoGastric solutions pays $5.25 million to settle on allegations of Medicare Fraud billing

Medical Device manufacturer EndoGastric Solutions Inc. will pay Uncle Same $5.25 million to settle allegations that it defrauded Medicare by misleading health care providers about how to bill Medicare and for paying kickbacks.

EndoGastric sells a device called EsophyX to treat gastroesophageal reflux. The Government alleges that EndoGastric Solutions knowing caused health care providers to bill for the less invasive procedure by using codes which would result in payment for a more invasive procedure and a higher level of reimbursement.Œ

The kickbacks alleged involved paying remuneration to certain physicians for participating in patient seminars and co-marketing agreements to induce them to use the product. This was a whistleblower case brought by Glenn Schmasow in Montana and he is expected to receive 20% of the settlement or $1.05 million as his whistleblower reward.