Kyden Creekpaum
November 6, 2018
A little-noticed nugget in the recent Stryker SEC Order (Stryker II) — in addition to overbilling, kickbacks, and using unvetted intermediaries in India and China — was the allegation that Stryker’s “Kuwait Distributor made over $32,000 in improper ‘per diem’ payments to Kuwaiti [healthcare providers] to attend Stryker events, when Stryker had directly paid the costs for lodging, meals, and local transportation for these individuals.”
This strongly implies that the per diems were improper because they were paid in addition to all other costs (“Per-Diems-Plus”).
It is common practice to advise clients that the payment of Per-Diems-Plus increases compliance risk, but to my knowledge, the SEC and DOJ have never gone so far as to state or even imply that Per-Diems-Plus are per se improper.… Continue Reading