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Ortho firms pull back on doc payments

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The orthopedic implant industry dialed back its payments to orthopedic surgeons after settling a federal lawsuit in 2007 that accused the companies of paying kickbacks to the surgeons for using the companies' hip and knee implants.

A total of 939 orthopedic surgeons received $198 million in 2007, according to a new report in the Archives of Internal Medicine. A year later, 526 surgeons received payments worth $119 million, plus $109 million in royalty buyouts from Zimmer.

Researchers analyzed data released by the three industry giants based in Warsaw—Biomet Inc., DePuy Orthopaedics Inc. and Zimmer Holdings Inc.—as well as their rivals Stryker Corp., based in Kalamazoo, Mich.; and Smith & Nephew plc, based in the United Kindgom.

The orthopedic companies describe their payments—made to a fraction of the 25,000 orthopedic surgeons nationally—as compensation for consulting, research and clinical trials, or as royalties on products they helped develop.

The number of payments in excess of $1 million didn’t change substantially from year to year, but the companies sharply cut their fees to surgeons who received the smallest amounts, lead researcher Jason Hockenberry, a professor of health policy and management at Emory University, told Bloomberg News.

In 2007, the orthopedic device makers agreed to pay $311 million to settle U.S. Department of Justice claims that they paid kickbacks to surgeons in exchange for exclusively using their products. Prosecutors deferred criminal charges against the companies and required them to disclose the amounts they pay doctors on their corporate websites.

Bill Kolter, Biomet’s vice president for government and public affairs, told Bloomberg that manufacturers can’t develop or evaluate new devices without working with orthopedic surgeons.

“The contributions that result from such collaborations add tremendous value to the health of patients and to the economics of the health-care system,” Kolter wrote in an e-mail.

 

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  1. So the Mayor adds another non value added layer to having a vehicle towed? Whereby the City Government RECIEVES AN ILLEGAL KICKBACK FROM A LGOISTICS COMPANY THAT SUBS THE WORK TO LOCAL TOW COMPANIES? What is the service the City performs for receiving the "tribute"? This is RICO!!!!! What a corrupt and unnecessary layer. What a dirtbag Mayor and his cronies.

  2. Owner occupied housing. Clear enough?

  3. So people think I am paranoid. It's from experience in dealing with puds requested by developers who make major donations themselves to representatives, have nice fund raisers for those running for office and hide through pac's. then there are the public relation firms. You will note some pr comments below. You there Clyde Lee? My opinion. Commercial along 421, great. Multifamily housing, terrible idea that will change the town. Senior condos or zero lot line homes west, great. I suggest keeping all entries to commercial areas at 421. All entries to owner occupied on sycamore. Will keep the traffic on sycamore down some. Two other things. You can't trust what will be there in 10 years. Steve builds quality stuff, but areas change over time. Look at the changes at the wall mart center at 86th and 421 over the last 10 years. Look at the apartments and neighborhoods behind St Vincent's. Raintree properties WILL decrease in value if commercial and multifamily goes in near. It has already been happening around the bridges area. The houses that have been sold recently are way below market. Several deals not closed due to the Illinois construction and the whole unsurety of the bridges. It's pretty simple, Zionsville will approve the whole thing because the city council has been groomed over a LONG period of time for this. I might even suggest some are in their position as a result of this.

  4. Esta, do you have a dog in this fight? You seem to really want to knock anyone against this project. No, I didn't move to Indiana for the architecture. I moved here for that red barn in the field. The horses and fields of corn. A place that is NOT overdeveloped. There are plenty of nearby places in Indianapolis that could be REDEVELOPED instead.

  5. RKW - OK, we get it, you're paranoid. The question is, are you paranoid enough? Greg - Yes, Pittman(s) is (are) at it again. They are developers, they build things. It's what they do. So when you go to work tomorrow, Greg, you're at it again too. Cliff - Really? You moved to Indiana for its progressive architecture? That's like moving to England for the cuisine. Zionsvillain - The house you moved to was once a field or woods. I'm willing to bet folks were upset when that ground was plowed under and a house was built. But I guess now that you are in, everything should stop? "My house was OK, but the next one is sprawl." SE Guy - Please don't paint us with such a wide brush. Most reasonable Zionsville residents welcome planned, measured development.

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