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Senior Citizen Politics
Aging Committee Hearing Today Questions Physician
Inducements
Investigation reinforces need for physician payment
sunshine act
 Feb. 27, 2008 An investigation by the Senate
Special Committee on Aging has found rampant conflicts of interest in
the medical device industry, with surgeons being induced by an
assortment of cash, free travel and other gifts to use particular
devices. The committee will hold a hearing this today to see if these
inducements violate industry ethics or federal laws.
The hearing - Surgeons for Sale: Conflicts and
Consultant Payments in the Medical Device Industry is scheduled at
10:30 a.m. in Room 628 of the Dirksen Senate Office Building in
Washington.
An investigation conducted by the committee over
the last six months has revealed that conflicts of interest were rampant
in the medical device industry, with surgeons being induced to use
particular medical devices through consulting fees, royalties, payments
for clinical studies of limited value, education grants, lavish travel
and other gifts, according to a news release from the office of Chairman
Herb Kohl (D-WI).
Many of these inducements can be characterized as
excessive, illegitimate and often times are undocumented. 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 statutes, the news release stated.
Last June, the committee held a hearing examining
the relationships between physicians and the pharmaceutical industry.
Following the hearing, Chairman Kohl and Finance Committee Ranking
Member Charles Grassley (R-IA) introduced the
Physician Payment Sunshine Act (S.2029) to require manufacturers of
pharmaceutical drugs, medical devices, and biologics to disclose the
amount of money they give to doctors through payments, gifts, honoraria,
travel and other means. This hearing underscores the importance of
legislation.
Wednesdays hearing will feature testimony from the
Office of Inspector General (OIG) for the Department of Health and Human
Services (HHS), as well as from a surgeon and an industry executive, who
will offer their perspectives on the conflicts raised by these types of
payments. The committee will also hear from two medical device
companies and from AdvaMed, the leading industry organization.
Witnesses
Greg Demske, Assistant Inspector for Legal Affairs, Office of
Inspector General, US Department of Health and Human Services,
Washington, DC
Charles Rosen, Clinical Professor, University of California, Irvine,
CA; President, Association for Ethics in Spine Surgery
Said Hilal, President/CEO, Applied Medical Resources Corporation,
Rancho Santa Margarita, CA
Edward Lipes, Executive Vice President, Stryker Corporation, Mahwah,
NJ
Chad Phipps, Senior Vice President, Secretary and General Counsel,
Zimmer Holdings, Inc., Warsaw, IN
Christopher White, Executive Vice President, General Counsel and
Assistant Secretary, AdvaMed, Washington, DC
>>
Click Here to live video (Real) that is also available to view after
the hearing.
>>
Click after hearing to read testimony.
>> Committee webpage:
www.aging.senate.gov
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