AdvaMed Offers Qualified Support For Bill To Require Disclosure Of Payments From Medical Device Companies To Physicians

Main Category: Medical Devices
Also Included In: Primary Care / General Practice
Article Date: 28 Feb 2008 - 7:00 PDT

email to a friend   printer friendly   view / write opinions   rate article

Advanced Medical Technology Association officials on Tuesday announced qualified support for a bill that would require medical device companies to disclose payments to physicians on a Web site, the St. Paul Pioneer Press reports (Snowbeck, St. Paul Pioneer Press, 2/27). However, AdvaMed officials said that they hope to discuss changes to the legislation to protect legitimate payments to physicians who help develop medical devices (Winstein, Wall Street Journal, 2/27). AdvaMed officials made the statement in advance of a Wednesday Senate Special Committee on Aging hearing that will examine the relationship between medical device companies and physicians.

In advance of the hearing, the office of committee Chair Herb Kohl (D-Wis.) released an advisory that said a six-month investigation found "rampant" conflicts of interest. "Many of these inducements can be characterized as excessive, illegitimate and often times are undocumented," the advisory stated. In addition, the advisory stated, "These types of relationships may not only violate voluntary industry codes of ethics and conduct but, in some instances, violate federal anti-kickback and self-referral statues."

Christopher White, general counsel for AdvaMed, said that he had not reviewed the results of the investigation, but he denied the alleged conflicts of interest. "Unlike other health care industries, medical device companies must rely on physician experience and feedback to develop better treatments for patients," White said.

Comments From Medtronic Officials
Medtronic officials on Tuesday also announced qualified support for the legislation. However, Medtronic officials said that lawmakers should expand the bill to include smaller medical device companies and companies owned by physicians. Currently, the legislation applies only to medical device companies that report at least $100 million in gross revenue annually.

Medtronic CEO Bill Hawkins said, "We will continue to work with the sponsors of this legislation to incorporate all companies in the industry into the bill and bring greater transparency to these important relationships" (St. Paul Pioneer Press, 2/27).

Reprinted with kind permission from http://www.kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at http://www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation© 2005 Advisory Board Company and Kaiser Family Foundation. All rights reserved.