Personal Injury Law

Dangers Of Industry Payments To Doctors

Emory University in Atlanta, Georgia has been involved in a controversy concerning undisclosed payments to the head of the psychiatry department by drug companies. The danger that these financial relationships between physicians and drug and medical device manufactures can pose to patients is being brought to light in West Virginia.

Two companies that make medical devices and surgical materials may face sanctions related to medical malpractice lawsuits filed by patients against John Anderson King, an osteopathic surgeon on the staff of Putnam General Hospital in West Virginia between November 2002 and June 2003.

Wright Medical Technology Inc. and EBI Inc., disclosed potential financial penalties in required filings with the U.S. Securities and Exchange Commission. The U.S. Department of Justice has confirmed that it is investigating Wright Medical and several other medical device companies.

Last year, Hospital Corporation of America, which owned the hospital while Dr. King was working there, paid about $100 million to settle 124 medical malpractice lawsuits filed by former patients.

Several of the 124 lawsuits filed in Putnam County named at least one of the two medical device companies that supplied surgical tools that Dr. King used often. Wright Medical Technology Inc. is mentioned in 33 lawsuits. Wright manufactured Allomatrix, a bone-fusion material that failed to work properly during two experimental studies performed on rats and rabbits. A third study, using primates showed questionable results.

EBI Inc., a subsidiary of Biomet Inc. is mentioned in 38 lawsuits involving spine-stimulating devices Dr. King used during surgeries. EBI is alleged to have paid Dr. King a bonus each time he inserted one of its spacers into a patient's spine. The spacers have never been successfully used in animals or humans to replace diseased or damaged vertebral disks, according to a federal whistleblower complaint filed against Dr. King.

The complaint alleges that Payments and kickbacks to doctors such as Dr. King were disguised as consulting agreements. The kickbacks have taken the form of cash payments, travel benefits, entertainment and other benefits.

Patients have said Dr. King never informed them he was implanting experimental devices inside their bodies.

Full post as published by Georgia Injury Lawyer Blog on March 09, 2009 (boomark / email).