Reliance Medical to Pay $1 Million Spinal Surgery Settlement

Reliance Medical Systems LLC and others will pay $1 million to end the government’s False Claims Act suit alleging a kickback scheme that caused doctors to bill Medicare for unnecessary spinal fusion surgeries.

The parties reached a settlement the morning of the second day of trial at the U.S. District Court for the Central District of California, Reliance Medical’s attorney, Patric Hooper of Hooper Lundy & Bookman PC, Los Angeles, told Bloomberg Law.

The Justice Department had been seeking treble damages and civil penalties in excess of $30 million. The amount paid by Medicare for the surgeries was $9 million, ...