My Aching Hip
On Monday, it was revealed that DOJ has subpoenaed documents from several medical device manufacturers. Reuters reports:
Zimmer Holdings Inc., Biomet Inc., Johnson & Johnson and Stryker Corp. all said they had received subpoenas from the government demanding documents related to the manufacture and sale of the companies’ products, which include artificial hips and knees. The subpoenas to Biomet, Stryker and Zimmer relate to possible violations of federal criminal law and seek documents dating back to 2001, the companies said.
The AP reports:
Some analysts think the investigation stems from findings from an earlier probe into the relationships between orthopedics manufacturers and the doctors who buy the products on behalf of hospitals. Orthopedic surgeons typically select the devices while hospitals pay for them, and some analysts said the manufacturers and the doctors have a cozy relationship that leads to inflated prices in a noncompetitive market. “The doctor has a lot of influence over the implants being used at a hospital; he’s probably the main gatekeeper,” Wittes said. “The doctors are choosing and the hospitals are paying.”
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July 24th, 2006 at 9:13 am
[…] Several weeks ago, news broke that DOJ’s antitrust division was investigating several orthopedic device manufacturer. On Friday, the AP reported that: Makers of orthopedics devices received a lift Friday on the belief an antitrust probe into the sector will not be as prohibitive as originally thought after comments from Stryker Corp.’s chief executive that the scope of their investigation had been narrowed. […]