Violation Tracker Individual Record

Company: 
Parma Community General Hospital
Current Parent Company: 
University Hospitals
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 Parent: 
USA
HQ State of Parent: 
Ohio
Ownership Structure of Parent: 
non-profit
Major Industry of Parent: 
hospitals
Specific Industry of Parent: 
healthcare services
Source Notes: 
If an online information source is not working, check the Violation Tracker Data Sources page for an updated link.
Parent company note: 
Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.