Doctors Focus of Kickback Probe
March 24th, 2008 joshua
The focus of the federal inquiry looking into kickbacks physicians received to use certain hip and knee implant parts is now squaring on doctors, according to a New York Times report.
The five major makers of these devices have settled with the government and agreed to pay $310 million in civil charges after admitting to paying “consultant” fees to physicians to endorse their products over competitors.
According to the Times article, by settling with the device makers, it closes the supply end of the kickback issue, and by focusing on the doctors, it addresses the demand issue.
The Times reports: “The government has not argued that any of the kickbacks led to unnecessary knee or hip surgery or maltreatment of any patients. Nor has it established a direct link to higher Medicare costs. Switching a patient from one company’s device to another would not change the amount Medicare pays hospitals for an implant.
“But kickbacks might raise the overall cost of health care. Doctors can be convicted of violating Medicare’s antifraud statutes simply for submitting a bill for a procedure linked to a kickback, whether or not the procedure was necessary.”
The device makers have avoided prosecution by agreeing to settle with the federal government.
