CareFusion to pay $40.1M for kickback scheme

Monday, January 13, 2014

SAN DIEGO – CareFusion will pay the government $40.1 million to settle, without liability, government allegations that it paid kickbacks and promoted products for uses not approved by the U.S. Food and Drug Administration (FDA), according to a Jan. 9 release. The government charged that CareFusion paid $11.6 million to Dr. Charles Denham, then co-chairman of the Safe Practices Committee at the National Quality Forum, to recommend and promote ChloraPrep products, encouraging providers to purchase them, according to the statement. “When companies pay kickbacks to doctors, especially doctors involved in setting standards for the health care industry, they undermine the integrity of the health care system,” said Stuart Delery, assistant attorney general of the Department of Justice’s Civil Division, in a statement. The settlement resolves a case filed by Dr. Cynthia Kirk under the whistleblower provision of the False Claims Act. Her share of the settlement: $3.26 million. CareFusion previously disclosed the settlement in April of 2013.