Hollister, Byram settle for millions

Tuesday, May 3, 2016

BOSTON – Hollister and Byram Healthcare Centers have agreed to pay $11.4 million and $9.3 million, respectively, to resolve allegations that they engaged in a kickback scheme designed to increase sales and profits, the U.S. Attorney’s Office for the District of Massachusetts announced April 29. The settlement with Hollister resolves allegations that, from 2007 through 2014, it paid kickbacks to Byram in return for marketing promotions, conversion campaigns, and other referrals of patients to its ostomy and continence care products. The settlement with Byram resolves allegations that, in 2012 and 2013, it received numerous kickbacks from Hollister and three other manufacturers of ostomy and continence care products—Coloplast, Montreal Ostomy and Safe N’ Simple—in return for its agreement to conduct promotional campaigns and to refer patients to the products of these manufacturers. It also resolves allegations by the federal and California state governments that Byram submitted inflated claims to the Medi-Cal program in violation of state regulations that limit the amount a provider can bill for certain products. The settlements resolve allegations in a whistleblower lawsuit filed by two former employees and one current employee of Coloplast under the qui tam provisions of the False Claims Act. In response to the settlements, Bryam stated, "There is no finding of liability." "We are pleased to have put this matter behind us," stated Perry Bernocchi, CEO. "We look forward to continuing to serve our customers by delivering high-quality supplies and services prescribed by their health care professional, supporting their treatment and improving their health and quality of life." Claims against two other defendants, Coloplast and Liberator Medical Supply, were resolved in December 2015 for almost $3.7 million. The new settlements bring the total recovery in the case to $24.6 million.