Cochlear Americas Pays $950,000 to Settle Federal Kickback Allegations

[CrazyOne]

I would suggest that anyone that has proof of "kick-backs" for purchase of medical devices in the USA, turn the offenders into the FDA. That is a violation of Federal law.

This sort of thing used to happen until the FDA cracked down in early 90s. There are no more free cruises paid by the companies. Now, what is allowed for instance, is that a training course is put on for surgeons. Typically these are in nice places. But with USA law, the business (medical company) has to be able to prove that more than 50% of the time each day was spent conducting business activities.

Like it or not, this is simply business. All types of businesses do this. Taking people out for lunch is by no means illegal and in fact the tax code encourages it. However, this is for all businesses. IF you have ever run a business the reason why the entire staff was taken out is because if the meal is selective (i.e. you invite the surgeon and his nurse but leave out the front office and another nurse) then the tax deduction rate for the meal is 50%; if you invite everyone, the tax deduction rate is 100%.

I would have a suggestion for anyone who thinks that all the businesses are scamming people and making extraordinary profits. Start your own competing business and undercut them by making only reasonable profits. You should quickly approach a dominant market share position.

C1

 

[jillio]

I would suggest that anyone that has proof of "kick-backs" for purchase of medical devices in the USA, turn the offenders into the FDA. That is a violation of Federal law.

This sort of thing used to happen until the FDA cracked down in early 90s. There are no more free cruises paid by the companies. Now, what is allowed for instance, is that a training course is put on for surgeons. Typically these are in nice places. But with USA law, the business (medical company) has to be able to prove that more than 50% of the time each day was spent conducting business activities.

Like it or not, this is simply business. All types of businesses do this. Taking people out for lunch is by no means illegal and in fact the tax code encourages it. However, this is for all businesses. IF you have ever run a business the reason why the entire staff was taken out is because if the meal is selective (i.e. you invite the surgeon and his nurse but leave out the front office and another nurse) then the tax deduction rate for the meal is 50%; if you invite everyone, the tax deduction rate is 100%.

I would have a suggestion for anyone who thinks that all the businesses are scamming people and making extraordinary profits. Start your own competing business and undercut them by making only reasonable profits. You should quickly approach a dominant market share position.

C1

Ever attended one of those "training courses?" Semantics for "paid vacation."

 

[CrazyOne]

Ever attended one of those "training courses?" Semantics for "paid vacation."

I could ask the same. Have you ever attended one put on by a hearing implant company to show that they are paid vacations?

But to be less elusive on my part, yes, I have.

C1

 

[LDNanna]

I agree with Jillio. Semantics. I have a friend who works for a very prominent MD. A cruise paid for by an equipment company where they train the employees to operate the equipment. Many places in beautiful South America, Alaska, and the Caribbean. Yes, you do attend the training, schmooze with other professionals, make serious business contacts and meet other equipment sellers. Sounds legal. Who ends up paying? The customers and also some insurance companies, medicare and medicaid. Do I think that any med or med equipment company would do this. You bet. Is it fair? No. The equipment should be so useful, so well made and be obviously necessary. Many companies have practiced fairly, above board and do profit. Why? Great, dependable and affordable equipment. If it makes the professionals jobs easier, saves time, and greatly benefits the patient/customer it sells itself. That is a proven model of sales.

 

[yizuman]

A hearing aid company falsely billed to the Feds using my audiology results, I'm not sure how, but the Feds did call me and asked me questions like did I receive my hearing aids from them and I said no. That raised red flags for me. I got mine from a goodwill organization that was paid for by donations.

They got shut down not long after that and their company got liquidated by another company with different staffs now.

Yiz

 

[jillio]

I could ask the same. Have you ever attended one put on by a hearing implant company to show that they are paid vacations?

But to be less elusive on my part, yes, I have.

C1

I have attended any number of seminars put on by Big Pharma, and I attended any number of medical seminars put on by manufacturers with my husband. So, yeah, I've got a number of those "seminars" under my belt. Paid vacation.

 

[jillio]

I agree with Jillio. Semantics. I have a friend who works for a very prominent MD. A cruise paid for by an equipment company where they train the employees to operate the equipment. Many places in beautiful South America, Alaska, and the Caribbean. Yes, you do attend the training, schmooze with other professionals, make serious business contacts and meet other equipment sellers. Sounds legal. Who ends up paying? The customers and also some insurance companies, medicare and medicaid. Do I think that any med or med equipment company would do this. You bet. Is it fair? No. The equipment should be so useful, so well made and be obviously necessary. Many companies have practiced fairly, above board and do profit. Why? Great, dependable and affordable equipment. If it makes the professionals jobs easier, saves time, and greatly benefits the patient/customer it sells itself. That is a proven model of sales.

There you go. Training seminars for the use of medical equipment and surgical techniques should be done in a controlled medical environment...e.g. hospital or medical school facility in the city where the physicians are practicing.

 

[CrazyOne]

There you go. Training seminars for the use of medical equipment and surgical techniques should be done in a controlled medical environment...e.g. hospital or medical school facility in the city where the physicians are practicing.

Which city do you pick? If you are at the trainings, you will see that doctors from many places attend the trainings. And, if the training requires a hospital setting, you can rest assured that they do it in a hospital.

Do you think it is more cost effective to have a company training rep visit 20 doctors at their site or bring 20 doctors together? Which is a better training experience?

I realize that people are upset in that the consumer pays for this. However, get used to it. All business runs like that. Why do you think medical should be different? Are you upset about CES? 2010 International CES, January 7-10 You pay indirectly in consumer electronics goods for that. What about the windows or apple computer you are using. Do you think these world premier events are free?

Again, the threshold by US law is that for a business trip to be considered a business trip is that each day must be at least 50% business.

C1

 

[jillio]

Which city do you pick? If you are at the trainings, you will see that doctors from many places attend the trainings. And, if the training requires a hospital setting, you can rest assured that they do it in a hospital.

Do you think it is more cost effective to have a company training rep visit 20 doctors at their site or bring 20 doctors together? Which is a better training experience?

I realize that people are upset in that the consumer pays for this. However, get used to it. All business runs like that. Why do you think medical should be different? Are you upset about CES? 2010 International CES, January 7-10 You pay indirectly in consumer electronics goods for that. What about the windows or apple computer you are using. Do you think these world premier events are free?

Again, the threshold by US law is that for a business trip to be considered a business trip is that each day must be at least 50% business.

C1

I take it you are somehow responsible for conducting or arranging these "trainings"?

And, when one attends a seminar, it is considered that 100% of the trip is business related.

 

[CrazyOne]

I take it you are somehow responsible for conducting or arranging these "trainings"?

And, when one attends a seminar, it is considered that 100% of the trip is business related.

No. I am not responsible nor do I conduct trainings. I have conducted trainings in the past but not like how you would imagine. The one I did were one-on-one with surgeons in hospitals where I went to them. However, I no longer do that.

C1

 

[jillio]

No. I am not responsible nor do I conduct trainings. I have conducted trainings in the past but not like how you would imagine. The one I did were one-on-one with surgeons in hospitals where I went to them. However, I no longer do that.

C1

Well, then; you have experience in doing one on one trainings in a medical facility. That is not what we are talking about here. I can assume that you were instructing physicians in the use of a piece of equipment they had purchased or that you were marketing.