Anti-kickback Charges Against Exactech Dropped
Anti-kickback Charges Against Exactech Dropped (Walter Eisner @ OTW)
Exactech, Inc.’s Deferred Prosecution Agreement (DPA) with the U.S. Attorney’s Office in New Jersey has expired.
With this expiration, all charges filed against the company in 2010 for conspiring to commit violations of the Federal Anti-kickback Statute have been dropped.
The company remains under a Corporate Integrity Agreement (CIA) administered by the U.S. Department of Health and Human Services’ Office of Inspector General. The CIA remains in effect until December 7, 2015. Other orthopedic companies with expired DPAs are also under continued CIAs.
The company, according to Exactech Chairman and CEO Bill Petty, M.D., now has the systems in place to ensure, “effective [and] efficient compliance.” In a March 15 press release, Petty added, “We will continue to practice the highest standards of ethics, which have been and will continue to be hallmarks of our corporate culture.”
With this expiration, Wright Medical Technology, Inc., remains the last significant orthopedic company still operating under a DPA. Exactech voluntarily extended the original terms of the DPA for three months back in December, 2011. Wright Medical agreed to a 12 month extension in September.
After the Exactech DPA went into effect in December 2010, the government filed charges against the company for conspiring to commit violations of the Federal Anti-kickback Statute from January 2002 to late 2008. The charges were “deferred” in light of the company’s “remedial actions” to date and, according to the Agreement, willingness to undertake additional actions; acknowledge responsibility for its behavior; continued cooperation; and demonstrate its good faith and commitment to comply with federal health care laws. The charges are now dismissed.
According to SEC reports, the company paid about $13 million over the last three years in legal expenses and compliance costs.