Medical device maker settles lawsuit
HELENA, Mont. (AP) -- A medical device manufacturer with offices in California and Washington has agreed to pay the federal government up to $5.25 million to resolve allegations that it instructed doctors to over-charge federal health care programs for a procedure using their device.
The U.S. Justice Department announced the settlement with EndoGastric Solutions Inc. on Wednesday. It resolves a whistleblower lawsuit filed in Montana by former employee Glenn Schmasow, who will receive up to $945,000.
EndoGastric created the EsophyX as a less invasive way to treat gastric reflux. The government alleged the company told health care providers to bill for the procedure using codes that applied to a more invasive and more expensive procedure.
EndoGastric Solutions says it does not admit any wrongdoing in the settlement.