Siemens to pay $5.9 million to end dispute

Posted by Press Release on May 13, 2015

Healthcare technology company Siemens Medical Solutions USA, Inc. (SMS) has agreed to pay $5.9 million to resolve an investigation into the overcharging of the federal government for purchases of medical imaging equipment, according to a civil resolution announced on Wednesday, May 13, by U. S. Attorney Zane David Memeger.

A press release from the U.S. Attorney’s Office said the dispute arose from an agreement the Defense Supply Center of Philadelphia (DSCP) negotiated with the Malvern company to purchase medical imaging equipment and support products between 2002 and 2008 on behalf of the U.S. Department of Defense. The U.S. Department of Veterans Affairs also purchased medical imaging equipment through the same contract.

Prosecutors alleged that SMS failed to provide the best price for certain purchases, overcharging the government, and withholding information about this overcharging.

Under the terms of the settlement agreement, SMS does not admit liability, and U.S. attorneys do not concede that their claims are not well-founded. The agreement avoids the expense of protracted litigation.

The allegations arose from an investigation led by the Department of Defense Office of Inspector General's Defense Criminal Investigative Service, the release said.