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Senate questions device maker payments to surgeons

Last year, five makers of orthopedic implants paid more than $221 million to surgeon consultants--and some Senate members want to know why. Today, the Senate Special Committee on Aging is holding a hearing to discuss the practice of paying surgeons such consulting fees. This comes as part of a larger effort by the committee's chairman, Sen. Herb Kohl (D-WI), who's filed legislation that would require device makers and drug companies to disclose consulting payments.

The hearing comes on the heels of antikickback settlements by Zimmer Holdings, Biomet, Stryker Corp., Smith & Nephew and DePuy Orthopedics. The companies agreed late last year to disclose consulting payment levels in exchange for a pass on allegations that they violated antikickback laws by paying doctors to use their products exclusively. The Senate will have a lot to chew on with just the information that these companies have already disclosed. Not only did they pay $221 million out to surgeons in 2007, they paid out more than $800 million between 2002 and 2006, investigators found.

To get more details on the investigation, including consulting business arrangements:
- read this Wall Street Journal article

Related Articles:
Decision makes it harder to sue device makers. Article
Readers weigh in on device-maker kickbacks. Article
Surgical device maker faces kickback investigation. Article

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Comments

First a disclaimer, I work for one of the DME providers in question.

Then to my comments.

The big push right now in healthcare is to reign in the cost of medical care. And despite efforts to cut costs by such things as better computer records, electronic monitoring of staff, particulary nurses, outsourcing of back-office functions, etc., the biggest cost associated with healthcare is the money paid to physicians.
Stores such as Wal-Mart are establishing walk-in clinics to provide primary care to patients by nurses, not physicians. New Jersey has had an measure on the table now for some time to permit Registered Pharmacists to prescribe certain medications directly themselves. Medical tests are being faxed and emailed to physicians overseas (particularly to India) for analysis. My own physician, part of a small two-physician practice, did a blood draw recently and then analyzed the results and changed one of my medications. My insurer refused to pay him, because they said I should have gone to a lab and had the results sent to India to one of their (non-American certified) doctors to review and advise me what to do. My doctor refused my offer to pay him as that violates his contract with the insurer. And the list goes on.
My hat is off to nurses and pharmacists, they do a tremendous job, but the reason American healthcare is the best in the world (even for those people whose physician is the local hospital emergency room)is the physicians themselves.
How much more do we have to keep cutting their incomes? Many physicians in my state spend more time working on their practice's finances than they do in continuing medical education.
Medicare and Medicaid are both looking at cutting payments to physicians as a way of cutting costs. Insurers are even encouraging patients to seek covered medical care overseas for the most expensive procedures.
Perhaps if physicians were permitted to earn incomes commensurate with their training and experience, the honest ones among them would not have to accept perks from outside vendors, whether they're payments for prescribing DME or free lunches.
Howard

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