Medtronic Inc. made an agreement of $75 million to settle allegations from the Justice Department that its Medtronic Spine LLC department caused hospitals to submit false claims to Medicare.

The allegations were directed originally to Kyphon Inc. (which later became Medtronic Spine LLC) a company acquired by Medtronic Inc. in November, because the company marketed a kyphoplasty procedure, a minimally-invasive surgery performed in an inpatient instead of an outpatient procedure.

As a result of the claims, Medicare ended paying more for some inpatient surgeries. Medtronic said the case had been disclosed in filings previous to the acquisition of Kyphon so that the settlement amount was reserved on its books already.

Two former Kyphon workers prompted the Justice Department case and under the settlement both will receive $14.9 million The Justice Department case was prompted by two former Kyphon employees, who will receive a total of $14.9 million.

Shares of Medtronic rose 0.61 percent to $50.74 a share at the closing trading of the New York Stock Exchange on Thursday.

Medicine