Federal Investigation on Kickbacks From Medical Device Makers Shifts Focus to Physicians

Now that HHS has reached settlements with the five leading artificial joint makers over kickbacks, the focus of the department's investigation is turning to the doctors who accepted the payments, the New York Times reports (Feder, New York Times, 3/22).

Medical device makers Biomet, DePuy Orthopedics, Smith & Nephew and Zimmer Holdings last year agreed to pay a combined $311 million to settle a federal investigation over allegations that the companies paid kickbacks to doctors to recommend their products. As part of the settlement, the four companies were required to make their consulting arrangements with physicians public. A fifth company, Stryker Orthopaedics, cooperated early in the investigation and paid no fines but agreed to reveal its consulting arrangements (Kaiser Daily Health Policy Report, 3/18)

During the annual meeting of the American Academy of Orthopedic Surgeons this month in San Francisco, Lewis Morris -- chief counsel at the HHS Office of Inspector General, which handles civil complaints of Medicare fraud -- said that the office is "going to be looking at those soliciting kickbacks."

According to the Times, industry executives "say they have heard that some doctors have received subpoenas," but none of them "have been publicly identified." The investigation has not revealed that any of the kickbacks led to unnecessary procedures or higher Medicare spending. Medicare pays the same rate for artificial joints, regardless of the maker. However, "kickbacks might raise the overall cost of health care," the Times reports. Physicians can be convicted of violating anti-kickback statutes in Medicare if they submitted a single bill for a procedure that is linked to a kickback (New York Times, 3/22).