Siemens Medical Solutions USA, Inc. has agreed to pay a $5.9 million settlement to resolve allegations that it overcharged the U.S. government for medical imaging equipment.
Between February 2002 and December 2008, the U.S. Department of Defense (DoD) and the Defense Supply Center of Philadelphia (DSCP) entered into an agreement with Siemens called the DSCP Contract. Through that contract, those organizations — as well as the U.S. Department of Veteran Affairs (VA) — purchased medical imaging equipment and support products.
The government is claiming that Siemens did not provide the DoD with the largest discount for certain purchases under the contract. Instead, it alleges that Siemens gave the biggest discount to a private or commercial customer that purchased a similar product.
The government also states that Siemens withheld information about overcharging. According to a statement from the DoD, when the overcharging was initially revealed, Siemens "issued mass discounts on multiple occasions to address the mis-billing on a prospective basis," but that only further concealed it from the government.
The VA was also overcharged for certain orders made under the contract that had been converted to a newer model, according to the government's claim. Some of the orders did not receive the larger discount that pertained to the newer model.
Despite paying the settlement, Siemens “denies any wrongdoing,” says Lance Longwell, director of corporate communications at Siemens. He told DOTmed News in a statement that the company made the payment to prevent further expenses and distractions.
Longwell also stated that Siemens has improved its processes for monitoring government compliance over the years and continues in its unwavering commitment to its customers, "including important government customers, and adherence to all applicable laws and regulations.”
