Clinics Settle False Claims Act Charges

Two East Tennessee orthopedic clinics have agreed to pay a combined $1.85 million to settle False Claims Act allegations, the Department of Justice said Friday. Tennessee Orthopedic Clinics in Knoxville will pay $1.3 million and the Appalachian Orthopedic Clinics in Kingsport will pay $550,000 for “knowingly bill[ing] state and federal health care programs for reimported osteoarthritis medications,” Knox News reports. The medications, known as viscosupplements, are lubricants approved for treatment of knee pain. The government had alleged that the clinics “knowingly purchased deeply discounted viscosupplements that were reimported from foreign countries and billed them to state and federal health care programs” although they were not eligible for reimbursement.