Bayer agrees to pay $97.5 million to settle kickback probe

The company has reached a settlement with the US Department of Justice (DoJ)related to an investigation into the Diabetes Care division’s historical marketing programs with certain mail order customers that took place during the period between 1998 and 2003. Bayer has cooperated fully with the DOJ’s civil investigation that commenced in 2003, without acknowledging liability.

Pursuant to the terms of the settlement agreement, Bayer HealthCare will also enter into a corporate integrity agreement (CIA) with the Office of Inspector General for the Department of Health and Human Services.

The Bayer HealthCare divisions covered by the CIA are those that sell products to Federal government entities or sell products for which claims are submitted for reimbursement under federal healthcare programs: Bayer HealthCare Diabetes Care, Bayer HealthCare Pharmaceuticals, Medrad (including Possis), Intendis and Viterion TeleHealthcare.

Bayer has decided to resolve this investigation to avoid the time, uncertainty, and expense of litigation. Bayer has said that funds for the settlement are covered by provisions.

The compliance processes have undergone continuous improvement in all areas of the company in the past years. In addition, employees receive regular training in order to promote understanding and compliance. As required by the CIA Bayer HealthCare will review and enhance these compliance programs and employee training.

Arthur Higgins, chairman of the board of management at Bayer HealthCare, said: “We are satisfied that the issues in question in Bayer HealthCare Diabetes Care have been resolved. The last several years have been a period of continuing positive change and growth for our company and we are eager to move forward, focus on our current business and most importantly, continue to be a valued and respected healthcare provider.”