BioTelemetry and its CardioNet subsidiary agreed to pay $44.875 million to resolve False Claims Act violation allegations.
Both companies now belong to Philips after it acquired BioTelemetry for $2.8 billion last year.
The U.S. Department of Justice alleged that the companies knowingly submitted false claims surrounding heart monitoring tests. DOJ claims the companies submitted claims to Medicare, Tricare, the Veterans Health Administration and the Federal Employee Health Benefits Program. These claims covered tests performed, in part, outside the U.S., and in many cases by technicians unqualified to perform them, DOJ alleged.
According to a news release, the U.S. alleged that CardioNet improperly billed for certain cardiac monitoring services. These include Holter, event monitoring and mobile cardiovascular telemetry tests. The tests, performed overseas, violated federal law prohibiting payment for services furnished outside the U.S., DOJ says.