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March 31, 2008

Relationships Between Manufacturers and Physicians will be More Closely Scrutinized, not Just in Orthopedics

Analysis of: New Focus of Inquiry Into Bribes: Doctors | www.nytimes.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
Frederic Goldstein, President and Chief Operating OfficerFrederic Goldstein
President and Chief Operating Officer, U.S. Preventive Medicine, Inc.
Implications: This article discussed the Federal investigation into payments made by orthopedic implant manufacturers and physicians who use these products. While there are certainly appropriate consulting arrangements, these can be easily abused and there will be more investigations, not just in orthopedics. 

Analysis: Orthopedic companies and their consulting relationships with orthopedic surgeons is only the first of what may be many investigations into payment arrangements between manufacturers and physicians. This appears very similar to the hospital investigations from a few years ago that looked into payments to medical directors as well as payments associated with physicians moving to the hospital and receiving office support etc.  Many of these were seen as "crossing the line" and were deemed to be kickbacks for referrals.  All companies will have to be sure the agreements they have with consulting physicians are for real work and appropriate dollar value as well as address other legal issues.

I expect other manufacturers of medical devices beyond orthopedics to be looked into as well.

Other Analyses of the Same Source Article:
More oversight to foil bribes is wishful thinking
April 7, 2008, Author: Robert Forster, Healthcare Consultant, Robert Forster, MD
Are all inducements bad?
March 31, 2008, Author: GLG Expert Contributor
bribes and bad apples
March 25, 2008, Author: John Spurlock, MD, Medical Director, Continence Management Institute of the LeHigh Valley

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