2002 Medtronic Suit Involving Payment to Doctors

A former lawyer for Medtronic is accusing the medical device company of engaging in an elaborate scheme to entice doctors to use its products. According to the recently unsealed 2002 lawsuit, Medtronic paid for doctor’s strip club visits, travel, clothing and other expenses. The suit seeks damages for violations of rules prohibiting inducements to use Medicare or Medicaid-covered products.

Benefits” to the doctors allegedly included, per the Wall Street Journal:

kickbacks were “pervasive” at Medtronic. Sales staff, she said, “routinely took physicians” visiting the spine unit’s Memphis headquarters to the Platinum Plus strip club, and picked up the tab for the dancers’ services during “VIP visits.” Kelley, reports the WSJ, also claims that on a five-day, all-expenses-paid trip to Alaska in 2001, which was billed as a “think tank,” doctors were supposed to present case studies. But, according to the complaint, little discussion of the case studies took place. One doctor scheduled to give a talk stood before the group, “said he was sorry, but he had not prepared anything,” and “drinking then commenced in place of discussion.” Medtronic picked up the cost of fishing guides and clothing for the doctors, the suit said. It said “women were also provided for the doctors,” but didn’t elaborate.

Interesting allegations. Doctors should know better.

Read more HERE.