Tennessee Prosthetics Company Settles Case Involving Kickback Allegations

On February 7, 2019, Amputee Associates, LLC (AA), Nashville, Tennessee, entered into a $681,774 settlement agreement with OIG. The settlement agreement resolves allegations that AA offered and paid illegal remuneration to two surgical practices and a prosthetist in the form of fee reductions and payments. Specifically, OIG alleged that AA reduced its monthly fee to a Texas surgical practice by an amount equal to the monthly salary the practice paid its prosthetist, in order to induce the practice to refer prosthetics business to AA. OIG also alleged that AA made payments to a prosthetist employed by a Georgia surgical practice in order to induce the prosthetist to refer prosthetics business to AA. In addition, OIG alleged that AA made payments to a Tennessee surgical practice in order to induce the practice to recommend the purchasing of goods and services from AA. Senior Counsel Michael Torrisi represented OIG.

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