The U.S. unit of Siemens Healthcare has agreed to pay the U.S. government $5.9 million to settle charges that it overcharged the U.S. government on purchases of medical imaging equipment.
The case was related to a contract Siemens had with Defense Supply Center Philadelphia (DSCP), which coordinates equipment purchasing for U.S. Department of Defense facilities, according to a May 13 announcement by the U.S. Department of Justice's U.S. Attorney's Office for the Eastern District of Philadelphia. U.S. Department of Veterans Affairs facilities also purchased equipment through the contract, which ran between 2002 and 2008.
The U.S. government charged that Siemens failed to provide the best price for some purchases made under the DSCP contract -- specifically, by not giving the largest discount that a private or commercial customer would have received for a similar product -- and therefore overcharged the government.
The government also charged that Siemens withheld information about the overcharging, and after it uncovered evidence of the practice issued "mass discounts on multiple occasions to address the misbilling on a prospective basis" between 2006 and 2009. However, this action did not correct the overcharging and in fact "further concealed it from the United States."
In a statement, Lance Longwell, Siemens' director of corporate communications, said that Siemens cooperated fully in the investigation and denies any wrongdoing but chose to settle the case to avoid further expense and distraction.
"Moreover, the company has further improved its processes for monitoring government contract 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," Longwell said.
