According the article, a lawsuit filed by a former Medtronic lawyer claims the company used entertainment at a strip club and trips to Alaska as incentives for doctors. Furthermore, the doctors were given patent royalties on inventions even though the doctors were not involved in inventing those specific products. The allegations were made in a lawsuit filed in US District Court in Memphis in 2002.
According to the lawsuit, kickbacks were Medtronic's "culture and way of doing business." The lawsuit further alleges that Medtronic paid for dancers' services during "VIP visits" to a strip club in Memphis. Finally, the lawsuit claims that Medtronic's consulting agreements with over 100 surgeons were simply an incentive to induce doctors to use Medtronic's products over competitors' products.
Companies are prohibited by federal law from inducing doctors to use products that are covered by either Medicare or Medicaid. The lawsuit names Medtronic and 10 doctors as defendants and helped lead to a $40 million settlement between Medtronic and the government. At least two other whistleblower lawsuits have also been filed by former Medtronic employees. Those lawsuits also claim that Medtronic had inappropriate financial relationships with some doctors.
Medtronic responded to the Wall Street Journal article by stating that it has put systems in place to ensure that the company's ethical standards are followed. Last year, Medtronic's spine business reported $3 billion in revenue.
Senator Charles Grassley is now investigating whether or not the incentives led to off-label use of the Medtronic Infuse Bone Graft. Off-label use of Infuse Bone Graft has been linked to life-threatening side effects including swelling of the throat, difficulty breathing and difficulty swallowing.
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Imagine finding out that your doctor used a product because the company that made it gave him gifts for doing so. That would probably cause you to question whether or not the product was really the best choice for your situation. Now imagine suffering adverse side effects and learning that your doctor was given gifts for using that product. It would probably make you very angry, at the least.
Some people are taking out their anger by investigating lawsuits alleging that Medtronic illegally promoted the off-label use of Medtronic Infuse Bone Graft.