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Violation Tracker Individual Record

Company: Parma Community General Hospital
Current Parent Company: University Hospitals
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Penalty: $40,000
Year: 2010
Date: June 4, 2010
Offense Group: government-contracting-related offenses
Primary Offense: False Claims Act and related
Secondary Offense: kickbacks and bribery
Violation Description: St. Jude Medical Inc., a heart device manufacturer; Parma Community General Hospital; and Norton Healthcare have paid the United States $3,898,300 to resolve false claim allegations that St. Jude paid illegal kickbacks to two hospitals to secure heart-device business. The kickbacks included alleged rebates that were "retroactive" and paid based on a hospital's previous purchases of St. Jude heart-device equipment and rebates that St. Jude paid for purchases of heart-device equipment sold by its competitors to induce purchases of similar equipment from St. Jude in the future.
Level of Government: federal
Action Type: agency action
Agency: Justice Department Civil Division
Civil or Criminal Case: civil
Facility State: Ohio
Facility City: Parma
HQ Country of Current Parent: USA
HQ State of Current Parent: Ohio
Ownership Structure of Current Parent: non-profit
Major Industry of Current Parent: healthcare services
Specific Industry of Current Parent: hospitals
Source of Data: (click here)
Archived Source: (click here)
Current parent company note: Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.