DoJ Investigating St Jude Cardiac 'Kickback' Scheme

Shelley Wood

May 08, 2014

ST PAUL, MN — The US Department of Justice (DoJ) is once again investigating whether St Jude Medical provided financial kickbacks to physicians or facilities using its cardiac devices.

The company alerted investors to the investigation in a regulatory filing Tuesday, noting that the DoJ has requested documents as part of an investigation into whether the company paid doctors to implant its heart devices, the Minneapolis/St Paul Business Journal reports[1].

As previously reported by heartwire , St Jude Medical paid $16 million in 2011 to settle a civil suit, resolving allegations that the company paid kickbacks to physicians to use their implantable cardioverter defibrillators (ICDs) and pacemakers. According to the DoJ at that time, St Jude used postmarketing studies and a registry as vehicles to reward physicians participating in those studies to implant the devices, paying each participating physician as much as $2000 per patient.

Specifics of these latest allegations have not been revealed. According to media reports, St Jude has already provided responses to authorities and is working with the DoJ to resolve a total of three investigations.

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