Texas firm to pay millions in Medicare fraud case

McKINNEY, Texas (AP) - The Justice Department says a Dallas-area medical manufacturer has agreed to pay $42 million in penalties to settle civil and criminal cases related to fraudulent claims it made to Medicare and other federal health care programs through the sale of its bone growth stimulator devices.

Federal authorities announced Thursday that Orthofix Inc. will pay more than $34.2 million to settle a whistleblower civil lawsuit that alleged the company improperly waived patient co-payments, resulting in overpayments by federal programs.

The suit, filed in Massachusetts, also said the McKinney-based company paid kickbacks to physicians and their staffs.

Authorities said Orthofix pleaded guilty to a felony charge of obstruction of a federal audit and been ordered to pay a nearly $7.8 million criminal fine.

A message was left with company officials.