Device Makers, Including Medtronic, in Talks with Hospitals, Hospital Systems over Experimental Financial Deals, Parker Waichman LLP Comments

Share Article

The deals involve performance-based contracts that feature risk-sharing financial arrangements over various medical implant devices.

News Image
“Consumers have a right to be assured that the devices and products used during their surgeries are safe and effective,” said Gary Falkowitz, Managing Attorney at Parker Waichman LLP.

Parker Waichman LLP (http://www.YourLawyer.com), a national law firm dedicated to protecting the rights of victims injured by defective drugs and medical devices, is commenting on a December 6, 2014 ModernHealthcare report that indicates some key medical device makers have been negotiating with hospitals over experimental financial deals for performance-based, risk-sharing contracts involving medical implant devices.

The current focus is very narrow and only involves cardiac devices, such as pacemakers. According to ModernHealthcare, this is likely because hospitals face potentially reduced payment rates for congestive heart failure patients. Meanwhile, each contract is created differently. “They're aligning risk to the kind of risk that matters to providers,” Brandi Greenberg, a managing director at the Advisory Board Company.

For example, ModernHealthCare noted that, while one contract may be structured so that a device maker returns a portion of the product’s price if performance goals are not met or a device fails in a specific time frame, another contract may mandate the facility pay more for a device that does meet manufacturers’ quality and financial claims, and another may involve device makers taking on part of the Medicare hospital readmission penalty when patients treated with a cardiac device are readmitted for a heart failure diagnosis.

Parker Waichman LLP comments that it is aware that patients may be harmed during medical procedures and as a result of the use of any medical device and is available to assist those individuals who have suffered injuries related to these procedures and medical device products.

Because of changes in hospital systems and increased availability to data, facilities are able to more accurately evaluate medical device performance. The ModernHealthCare report indicated. Some device makers looking at risk-based deals include Boston Scientific, Johnson & Johnson, Medtronic, and St. Jude Medical.

While the parties involved are focusing on cardiac or vascular devices, there are other medical devices that have garnered controversy over reports of serious adverse side effects and other issues, noted Parker Waichman LLP.

“Consumers have a right to be assured that the devices and products used during their surgeries are safe and effective,” said Gary Falkowitz, Managing Attorney at Parker Waichman LLP.

Parker Waichman LLP continues to offer free lawsuit consultations to victims of medical device injuries. If you or a loved one experienced complications following surgery or treatment with a medical device please visit the firm's Medical Device Injury page. Free case evaluations are also available by calling 1-800-LAW-INFO.

Share article on socal media or email:

View article via:

Pdf Print

Contact Author

Gary Falkowitz
Follow us on
Visit website