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Reliance Medical Must Face DOJ’s Medicare Surgery Fraud Claims

Nov. 12, 2021, 4:33 PM

Federal prosecutors adequately alleged that Reliance Medical Systems LLC violated the False Claims Act by engaging in a kickback scheme under which it caused doctors to bill Medicare for unnecessary spinal fusion surgeries, a California district court said.

The government has sufficiently asserted Reliance knew their incentive structure caused the doctors to perform unnecessary procedures with Reliance medical devices regardless of whether that constituted a kickback under the Anti-Kickback Statute, Judge Dean D. Pregerson of the U.S. District Court for the Central District of California said in a Wednesday decision denying Reliance partial summary judgment.

The government has introduced expert ...