Philips agreed to pay $2.4 million to settle allegations that the free masks it gave to sleep labs were kickbacks — incentives that encouraged sleep physicians to prescribe Philips’ respiratory care products.
The masks, according to a press release from the Department of Justice, were used to diagnose and treat sleep disorders. Philips Respironics, a subsidiary of Philips, allegedly gave out masks from 2016 to 2021. The case never went to court.
The DOJ says Philips violated the Anti-Kickback Statute as well as the False Claims Act. The Anti-Kickback Statute forbids manufacturers from giving doctors money or goods that might lead to favorable prescriptions; claims that the federal government would need to pay for.