This disturbing article in today’s New York Times caught my attention. Considering Medtronic is the manufacturer of DBS probes and battery packs, this is information that potential DBS patients need to understand. While there may be arguments stating that Medtronic did not own Kyphon when the alleged fraud occurred, we shouldn’t forget that Medtronic knew about the alleged fraud and bought Kyphon anyway.
That sends up warning flags for me, especially since I sat in a conference held by Medtronics recently where the neurosurgeon stated that the DBS process would take two hospital visits. He gave the reason for this as the hospital makes more money when they have two admissions per patient. And this helps them recover their costs. As I’ve stated in a previous blog, I also attended a conference in another city where the neurosurgeon stated that two hospital stays are not an option for his patients. He gets the entire procedure done in one hospital stay to cut down on the risk of infection, to make the patient as comfortable as possible, and to expedite the usage of the DBS device.
While free enterprise does not exclude the methods of medical manufacturers to make profits, let’s be aware of what Parkinson’s patients might face as they become dependent on any specific device or drug.
Please ask questions, do your research and most of all talk to other Parkies before you make the decision to turn your life over to any company, including Medtronic.
Here’s the article from the New York Times. http://www.nytimes.com/2008/05/23/business/23device.html?th&emc=th
Medtronic Settles a Civil Lawsuit on Allegations of Medicare Fraud
Two insiders had said Kyphon, which Medtronic acquired in 2007, improperly persuaded hospitals to keep people overnight for a simple outpatient procedure to repair small fissures of the spine. Medicare then reimbursed the hospitals much more generously than it otherwise would have for the procedure, which was developed as a noninvasive approach that could usually be done in about an hour.
By marketing its products this way, Kyphon was able to artificially drive up demand among hospitals, bolstering its revenue and driving up its stock price. Medtronic subsequently bought the company, its competitor, for $3.9 billion, greatly enriching Kyphon’s senior executives.
The settlement requires Medtronic to pay the federal government $75 million plus interest, and to enter into a “corporate integrity agreement” with the Office of Inspector General of the Department of Health and Human Services. The agreement will require the company to give correct advice to customers about how to apply for Medicare reimbursements. The company will also have to set up internal procedures to make sure it complies with the law.
