Two orthopedic clinics in East Tennessee have agreed to pay a combined $1.85 million to resolve state and federal False Claims Act allegations that they knowingly billed state and federal health care programs for reimported osteoarthritis medications, known as viscosupplements, federal authorities said.

Tennessee Orthopaedic Clinics, P.C., with headquarters in Knoxville and nine locations in East Tennessee, will pay $1.3 million and Appalachian Orthopaedic Clinics, P.C., with headquarters in Kingsport and three locations in the Tri-Cities area, will pay $550,000, according to a press release from  the U.S. Attorney William C. Killian said in a press release. Killian is U.S. attorney in the Eastern District of Tennessee.

The press release said viscosupplements, such as Synvisc and Orthovisc, are injections approved by the Food and Drug Administration for the treatment of osteoarthritis pain in the knee. Viscosupplements are reimbursed by Medicare, Medicaid, and other federal health care programs at a set rate based on the average sales price of the domestic product. [Read more…]