Fake Pricing Disclosures, Inflated Prices Charged to VA: $6.5M

The Federal Supply Schedule runs on honest commercial-pricing disclosures. DOJ alleged MiMedx’s were false — letting it charge VA inflated prices for tissue grafts sold into VA hospitals. Two former sales reps blew the whistle.

Settled — allegations resolved by agreement. This matter ended in a settlement or consent order: MiMedx Group Inc., Marietta, Georgia paid to resolve the allegations below, without a criminal conviction. The facts are drawn from the official account, linked at the bottom of this page.
$6.5MSettlement — false disclosures made to VA, inflated prices charged to VA
OutcomeSettled (2020): $6.5 million; whistleblowers receive $1,625,000
ForumDOJ Office of Public Affairs / District of Minnesota; investigated with VA OIG

DOJ alleged MiMedx knowingly submitted false statements and disclosures to VA about its commercial pricing practices — the very disclosures VA’s Federal Supply Schedule program relies on to negotiate fair prices.

The false disclosures enabled MiMedx to charge VA inflated prices for its human tissue graft products sold into VA medical facilities. The case began as a qui tam suit by two former MiMedx sales representatives.

MiMedx had self-disclosed its commercial sales practices to the VA OIG before DOJ revealed its investigation, and the settlement acknowledges its cooperation. A settlement of allegations; no determination of liability.

"Charging inflated prices for medical products is unlawful and unethical"
— U.S. Department of Justice, Office of Public Affairs (archive)
The system these cases ran through is run by Secretary of Veterans Affairs Doug Collins. The accountability record — the letters, the filings, the unanswered questions — is kept at DearDougCollins.com. For the veterans on the other side of the VA's machinery — including the exposure-classification fight — the hub is BrownWaterVet.com.

Source: U.S. Department of Justice, Office of Public Affairs (archive). Case file in the VA Fraud case files — part of the VA Fraud record. Cases are published as the courts decided them; amounts are stated as the Justice Department states them (billed, stolen, or ordered in restitution, as labeled).

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