Healthy Skepticism Library item: 13171

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Publication type: news

Baker R, McKenzie N.
Kickback claims being taken 'very seriously'
The Age (Melbourne) 2008 Mar 13
http://www.theage.com.au/news/national/kickback-claims-being-taken-very-seriously/2008/03/12/1205126011413.html

Full text:

THE body representing medical technology companies in Australia said yesterday that it was taking the US investigation into payments by medical device makers to overseas doctors “very seriously”.

The Medical Technology Association of Australia said it was working closely with medical device companies operating in Australia to ensure the kickback scandal that occurred in the US – where companies paid doctors $US222 million ($A238 million) in consultancy arrangements last year – is not repeated here.

Two of the biggest financial supporters of leading Melbourne hospitals and surgeons, US medical device companies Stryker and Zimmer, are being investigated by US authorities over payments to foreign doctors to secure exclusive use of their products.

Stryker and Zimmer make artificial hip, knee and spine implants, and devices used in trauma surgery. Both companies are listed by The Alfred and Royal Melbourne hospitals as big donors in recent years, contributing hundreds of thousands of dollars for research and other activities.

The two companies and several of their rivals have commercial links to several of Melbourne’s top surgeons, raising conflict of interest problems.

The Age was yesterday contacted by several Victorian doctors and other hospital workers who claimed medical device companies were actively seducing Melbourne surgeons with offers of five-star travel, payment of school fees and golf club memberships.

Federal Health Minister Nicola Roxon declined to make extensive comment on the situation while the US probe of payments to overseas doctors continued.

The association said the innovative nature of medical devices required a close relationship between clinicians and companies.

“However … this close relationship requires a clear understanding of ethical behaviours by both parties,” it said.

Australian Orthopaedic Association vice president John Batten agreed that surgeons and companies needed to work closely to ensure the proper development of medical equipment. Most surgeons were aware of what constituted a proper relationship and what was a breach of the association’s code of conduct, he said.