$2.39 Million Settlement reached to resolve False Claims Act Allegations against three orthopedic clinics

Settlement Amount:

$2,390,000

A settlement reached to resolve False Claims Act Allegations against Orthopedic Associates of Northern California; San Bernardino Medical Orthopaedic Group, DBA Arrowhead Orthopaedics and Reno Orthopaedic Clinic.

The allegations arose by a lawsuit claiming the three orthopedic clinics knowingly billed federal and state health care programs for re-imported osteoarthritis medications, known as viscosupplements.

Allegedly, the clinics bought discounted viscosupplements that were re-imported from foreign countries. The clinics then billed state and federal healthcare programs for reimbursements, even though the re-imported viscosupplements did not qualify as reimbursable. According, to the federal government the products were re-imported, therefore they could have been altered or stored inappropriately.

Orthopedic Associates of Northern California, located in Chico, will pay $815,794; San Bernardino Medical Orthopaedic Group Inc., DBA Arrowhead Orthopaedics, headquartered in Redlands, California, will pay $971,903; and Reno Orthopaedic Clinic, headquartered in Reno, Nevada, will pay $602,335.

The whistleblowers' share of the settlement will be approximately $430,000.

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