DJO GLOBAL PAYS $7.62 MILLION OVER “ASSUMPTIVE SELLING” ALLEGATIONS (Orthopedics this week)
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DJO Global Inc., has agreed to pay $7.62 million to the feds to resolve allegations that its subsidiary, Empi Inc. (Empi), submitted false claims to TRICARE for "excessive, unnecessary transcutaneous electrical nerve stimulation (TENS) electrodes that TRICARE beneficiaries did not need or use."
TRICARE is the military's health insurance arm.
The U.S. Department of Justice announced the settlement on January 23, 2018. The agency noted the claims settled by the agreement are "allegations only; there has been no determination of liability."
The gist of the agreement involves allegations that DJO's now defunct subsidiary, Empi Inc., based in Minnesota, submitted the false claims for the therapy that uses low-voltage electrical current for pain relief.
“Assumptive Selling”
The feds claimed that Empi used "inappropriate techniques such as 'assumptive selling' to persuade some TRICARE beneficiaries to seek and accept unjustifiably large quantities of TENS electrodes from 2010 through 2015, with a particularly steep increase in the number o...
