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    Home > Medical News > Medical World News > Huge indemnities up to 160 million US dollars!

    Huge indemnities up to 160 million US dollars!

    • Last Update: 2021-09-12
    • Source: Internet
    • Author: User
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    Medical Network September 7 News 
     
    Facing kickback allegations
     
    Abbott pays $160 million in compensation
     
    In mid-August, the U.
    S.
    Department of Justice announced that Abbott had agreed to pay 160 million U.
    S.
    dollars to resolve allegations that its subsidiaries provided diabetic patients with free blood glucose meters and other rebates to defraud medical insurance reimbursement
    .
     
    These allegations were made by former employees of Arriva Medical's call center.
    Arriva's parent company, Alere, was acquired by Abbott in October 2017
    .
     
    According to the whistleblower, Arriva provides free blood glucose meters, encourages patients to purchase more testing supplies, and regularly waives the co-payment part for medical insurance patients.
    The US Department of Justice stated that the department has continued this behavior from April 2010 to the end of 2016.

    .
     
      Arriva was once the largest direct mail supplier of medical insurance diabetes testing products in the United States.
    Medical device company Alere acquired Arriva in November 2011, and later Abbott acquired Alere in 2017
    .
     
      It is not difficult to see from the above incidents that the parent company shall bear responsibility for the alleged kickback accusation by the subsidiary of an overseas enterprise.
    This is clearly stipulated in the Foreign Corrupt Practices Act promulgated by the United States
    .
    It may seem unreasonable, but in fact, it is through strengthening the responsibility of the parent company to force it to actively restrain its subsidiaries, and ultimately maintain a good competitive environment in the market
    .
     
      Not only that, regardless of whether it is the suspected kickback or bribery cases of these company subsidiaries or employees, the company must be held responsible, and often have to pay huge indemnities for this:
     
      Last October, Medtronic agreed to pay a $8.
    1 million fine to the U.
    S.
    Department of Justice to quell its case of paying kickbacks to neurosurgeons in South Dakota
    .
     
      In January last year, in order to settle allegations of kickbacks related to the company’s sleep-disordered devices, ResMed paid $37.
    5 million in compensation
     
      Compared with the "huge compensation" of foreign companies such as Abbott and Medtronic, in contrast to domestic medical device procurement corruption cases, few domestic companies have paid the price for this, which is extremely ironic
    .
     
      Domestic bribery cases are endless
     
      Acting why business into a "culprit"?
     
      For a long time, kickbacks and bribery cases in China's medical industry have been repeatedly banned, but in the end, the dean was down and the dealers and medical representatives were taken away
    .
     
      At the beginning of this year, Wu Wenxia, ​​the former director of the Special Inspection Section of Panzhihua Maternity and Child Health Hospital, took advantage of her position to receive RMB 850,000 in cash from medical equipment sales personnel, involving a number of giant machinery companies, and these companies involved in the case pushed them after the incident.
    It even says "not responsible for managing sales"
    .
     
      In August of this year, a medical device seller in Jinan offered bribes to Duan Moumou, the former president of Zibo People's Hospital.
    In the end, the medical device representative and the president were arrested and sentenced by the supervisory authority, and the relevant device company went into hiding
    .
     
      Different from foreign marketing models that directly face patients and medical institutions, the domestic agency system has become a protective umbrella for these companies to a certain extent
    .
    But we all know that "a series of commercial promotion actions in the process of
    medical device sales are almost impossible to complete without the support of the headquarters of foreign companies in technology, after-sales, and operation .
    " Like pharmaceuticals , a "blacklist system" that goes to the manufacturing company is adopted, so the trick of "dumping the pot" has repeatedly worked
    .
     
      In response to the frequent occurrence of medical rebates, relevant state departments have successively issued relevant regulations
    .
     
      Medical device manufacturers are severely punished for dishonesty!
     
      The era of rebate gate "traceability" is here
     
      In September last year, the National Medical Insurance Administration implemented a credit evaluation system for medical price recruitment and procurement, which can be said to be a "revolutionary" policy
    .
     
      If a company bribing medical system personnel or falsely issuing invoices violates any of the regulations, in addition to being included in “serious dishonesty”, it will be reminded and warned by the collection center based on the severity, suspended or permanently banned, and more serious will be Facing "prison disaster"
    .
     
      After that, the National Medical Insurance Administration and the Supreme People’s Court jointly signed the "Memorandum of Cooperation on the Information Exchange and Sharing of Commercial Bribery Cases in the Pharmaceutical Field", established a regular notification system for commercial bribery cases in the pharmaceutical field, and established corporate credit information with the National Central Procurement Supporting implementation of the evaluation system
    .
     
      The issuance of these two documents is undoubtedly a huge blow to those companies that have been relying on kickbacks, bribery and other improper behaviors to carry out sales with gold.
    Those companies that are often on the list of bribery cases are engaged in centralized procurement and large-scale procurement.
    It is bound to be at a competitive disadvantage
    .
    At a time when various units of the country are severely cracking down on commercial bribery, whether it is a medical device company or a relevant sales representative, it must abandon the idea of ​​"relying on kickbacks to find a way out" and always adhere to legal and compliant industry standards
    .
    Medical Network September 7 News 
     
      Facing kickback allegations
     
      Abbott pays $160 million in compensation
     
      In mid-August, the U.
    S.
    Department of Justice announced that Abbott had agreed to pay 160 million U.
    S.
    dollars to resolve allegations that its subsidiaries provided diabetic patients with free blood glucose meters and other rebates to defraud medical insurance reimbursement
    .
     
      These allegations were made by former employees of Arriva Medical's call center.
    Arriva's parent company, Alere, was acquired by Abbott in October 2017
    .
     
      According to the whistleblower, Arriva provides free blood glucose meters, encourages patients to purchase more testing supplies, and regularly waives the co-payment part for medical insurance patients.
    The US Department of Justice stated that the department has continued this behavior from April 2010 to the end of 2016.

    .
     
      Arriva was once the largest direct mail supplier of medical insurance diabetes testing products in the United States.
    Medical device company Alere acquired Arriva in November 2011, and later Abbott acquired Alere in 2017
    .
     
      It is not difficult to see from the above incidents that the parent company shall bear responsibility for the alleged kickback accusation by the subsidiary of an overseas enterprise.
    This is clearly stipulated in the Foreign Corrupt Practices Act promulgated by the United States
    .
    It may seem unreasonable, but in fact, it is through strengthening the responsibility of the parent company to force it to actively restrain its subsidiaries, and ultimately maintain a good competitive environment in the market
    .
     
      Not only that, regardless of whether it is the suspected kickback or bribery cases of these company subsidiaries or employees, the company must be held responsible, and often have to pay huge indemnities for this:
     
      Last October, Medtronic agreed to pay a $8.
    1 million fine to the U.
    S.
    Department of Justice to quell its case of paying kickbacks to neurosurgeons in South Dakota
    .
     
      In January last year, in order to settle allegations of kickbacks related to the company’s sleep-disordered devices, ResMed paid $37.
    5 million in compensation
     
      Compared with the "huge compensation" of foreign companies such as Abbott and Medtronic, in contrast to domestic medical device procurement corruption cases, few domestic companies have paid the price for this, which is extremely ironic
    .
     
      Domestic bribery cases are endless
     
      Acting why business into a "culprit"?
     
      For a long time, kickbacks and bribery cases in China's medical industry have been repeatedly banned, but in the end, the dean was down and the dealers and medical representatives were taken away
    .
     
      At the beginning of this year, Wu Wenxia, ​​the former director of the Special Inspection Section of Panzhihua Maternity and Child Health Hospital, took advantage of her position to receive RMB 850,000 in cash from medical equipment sales personnel, involving a number of giant machinery companies, and these companies involved in the case pushed them after the incident.
    It even says "not responsible for managing sales"
    .
     
      In August of this year, a medical device seller in Jinan offered bribes to Duan Moumou, the former president of Zibo People's Hospital.
    In the end, the medical device representative and the president were arrested and sentenced by the supervisory authority, and the relevant device company went into hiding
    .
     
      Different from foreign marketing models that directly face patients and medical institutions, the domestic agency system has become a protective umbrella for these companies to a certain extent
    .
    But we all know that "a series of commercial promotion actions in the process of
    medical device sales are almost impossible to complete without the support of the headquarters of foreign companies in technology, after-sales, and operation .
    " Like pharmaceuticals , a "blacklist system" that goes to the manufacturing company is adopted, so the trick of "dumping the pot" has repeatedly worked
    .
     
      In response to the frequent occurrence of medical rebates, relevant state departments have successively issued relevant regulations
    .
     
      Medical device manufacturers are severely punished for dishonesty!
     
      The era of rebate gate "traceability" is here
     
      In September last year, the National Medical Insurance Administration implemented a credit evaluation system for medical price recruitment and procurement, which can be said to be a "revolutionary" policy
    .
     
      If a company bribing medical system personnel or falsely issuing invoices violates any of the regulations, in addition to being included in “serious dishonesty”, it will be reminded and warned by the collection center based on the severity, suspended or permanently banned, and more serious will be Facing "prison disaster"
    .
     
      After that, the National Medical Insurance Administration and the Supreme People’s Court jointly signed the "Memorandum of Cooperation on the Information Exchange and Sharing of Commercial Bribery Cases in the Pharmaceutical Field", established a regular notification system for commercial bribery cases in the pharmaceutical field, and established corporate credit information with the National Central Procurement Supporting implementation of the evaluation system
    .
     
      The issuance of these two documents is undoubtedly a huge blow to those companies that have been relying on kickbacks, bribery and other improper behaviors to carry out sales with gold.
    Those companies that are often on the list of bribery cases are engaged in centralized procurement and large-scale procurement.
    It is bound to be at a competitive disadvantage
    .
    At a time when various units of the country are severely cracking down on commercial bribery, whether it is a medical device company or a relevant sales representative, it must abandon the idea of ​​"relying on kickbacks to find a way out" and always adhere to legal and compliant industry standards
    .
    Medical Network September 7 News 
     
      Facing kickback allegations
      Facing kickback allegations
     
      Abbott pays $160 million in compensation
      Abbott pays $160 million in compensation
     
      In mid-August, the U.
    S.
    Department of Justice announced that Abbott had agreed to pay 160 million U.
    S.
    dollars to resolve allegations that its subsidiaries provided diabetic patients with free blood glucose meters and other rebates to defraud medical insurance reimbursement
    .
     
      These allegations were made by former employees of Arriva Medical's call center.
    Arriva's parent company, Alere, was acquired by Abbott in October 2017
    .
     
      According to the whistleblower, Arriva provides free blood glucose meters, encourages patients to purchase more testing supplies, and regularly waives the co-payment part for medical insurance patients.
    The US Department of Justice stated that the department has continued this behavior from April 2010 to the end of 2016.

    .
     
      Arriva was once the largest direct mail supplier of medical insurance diabetes testing products in the United States.
    Medical device company Alere acquired Arriva in November 2011, and later Abbott acquired Alere in 2017
    .
     
      It is not difficult to see from the above incidents that the parent company shall bear responsibility for the alleged kickback accusation by the subsidiary of an overseas enterprise.
    This is clearly stipulated in the Foreign Corrupt Practices Act promulgated by the United States
    .
    It may seem unreasonable, but in fact, it is through strengthening the responsibility of the parent company to force it to actively restrain its subsidiaries, and ultimately maintain a good competitive environment in the market
    .
     
      Not only that, regardless of whether it is the suspected kickback or bribery cases of these company subsidiaries or employees, the company must be held responsible, and often have to pay huge indemnities for this:
     
      Last October, Medtronic agreed to pay a $8.
    1 million fine to the U.
    S.
    Department of Justice to quell its case of paying kickbacks to neurosurgeons in South Dakota
    .
     
      In January last year, in order to settle allegations of kickbacks related to the company’s sleep-disordered devices, ResMed paid $37.
    5 million in compensation
     
      Compared with the "huge compensation" of foreign companies such as Abbott and Medtronic, in contrast to domestic medical device procurement corruption cases, few domestic companies have paid the price for this, which is extremely ironic
    .
     
      Domestic bribery cases are endless
      Domestic bribery cases are endless
     
      Acting why business into a "culprit"?
      Acting Acting Actingwhy business into a "culprit"?
     
      For a long time, kickbacks and bribery cases in China's medical industry have been repeatedly banned, but in the end, the dean was down and the dealers and medical representatives were taken away
    .
     
      At the beginning of this year, Wu Wenxia, ​​the former director of the Special Inspection Section of Panzhihua Maternity and Child Health Hospital, took advantage of her position to receive RMB 850,000 in cash from medical equipment sales personnel, involving a number of giant machinery companies, and these companies involved in the case pushed them after the incident.
    It even says "not responsible for managing sales"
    .
     
      In August of this year, a medical device seller in Jinan offered bribes to Duan Moumou, the former president of Zibo People's Hospital.
    In the end, the medical device representative and the president were arrested and sentenced by the supervisory authority, and the relevant device company went into hiding
    .
    Medical equipment medical equipment medical equipment
     
      Different from foreign marketing models that directly face patients and medical institutions, the domestic agency system has become a protective umbrella for these companies to a certain extent
    .
    But we all know that "a series of commercial promotion actions in the process of
    medical device sales are almost impossible to complete without the support of the headquarters of foreign companies in technology, after-sales, and operation .
    " Like pharmaceuticals , a "blacklist system" that goes to the manufacturing company is adopted, so the trick of "dumping the pot" has repeatedly worked
    .
    Enterprise enterprise enterprise medicine medicine medicine
     
      In response to the frequent occurrence of medical rebates, relevant state departments have successively issued relevant regulations
    .
    Medicine Medicine Medicine
     
      Medical device manufacturers are severely punished for dishonesty!
      Medical device manufacturers are severely punished for dishonesty!
     
      The era of rebate gate "traceability" is here
      The era of rebate gate "traceability" is here
     
      In September last year, the National Medical Insurance Administration implemented a credit evaluation system for medical price recruitment and procurement, which can be said to be a "revolutionary" policy
    .
     
      If a company bribing medical system personnel or falsely issuing invoices violates any of the regulations, in addition to being included in “serious dishonesty”, it will be reminded and warned by the collection center based on the severity, suspended or permanently banned, and more serious will be Facing "prison disaster"
    .
     
      After that, the National Medical Insurance Administration and the Supreme People’s Court jointly signed the "Memorandum of Cooperation on the Information Exchange and Sharing of Commercial Bribery Cases in the Pharmaceutical Field", established a regular notification system for commercial bribery cases in the pharmaceutical field, and established corporate credit information with the National Central Procurement Supporting implementation of the evaluation system
    .
     
      The issuance of these two documents is undoubtedly a huge blow to those companies that have been relying on kickbacks, bribery and other improper behaviors to carry out sales with gold.
    Those companies that are often on the list of bribery cases are engaged in centralized procurement and large-scale procurement.
    It is bound to be at a competitive disadvantage
    .
    At a time when various units of the country are severely cracking down on commercial bribery, whether it is a medical device company or a relevant sales representative, it must abandon the idea of ​​"relying on kickbacks to find a way out" and always adhere to legal and compliant industry standards
    .
    This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or complaint, to service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.

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