Landau Injury Law

The Associated Press reported on 5/22/08 that Medtronic will be settling the Justice Department’s fraud case against it for $75 million. The case stems from allegations that spinal catheter maker Kyphon fraudulently caused hospitals to file inflated reimbursement claims with Medicare for back surgery known as kyphoplasty. Kyphon was acquired in November of 2007 by Medtronic.

Kyphoplasty is a minimally invasive spinal surgery procedure used to treat vertebral compression fractures (VCFs). A VCF is a fracture in the body of a vertebra, which causes it to collapse. Kyphoplasty involves the use of a device called a balloon tamp to restore the height and shape of the vertebral body, which is the bone that comprises the back and spinal column. This is followed by insertion of bone cement to strengthen the vertebra. The operation on the injured person’s back and spine is performed with the patient lying face down on the operating room table and 2 x-ray machines. (For more information, go to the American Academy of Orthopedic Surgeons site: http://orthoinfo.aaos.org/topic.cfm?topic=A00388)

Federal prosecutors alleged that the company wrongfully marketed the surgical procedure. Medtronic maintained the settlement reflects its assertion that neither Kyphon nor its employees engaged in any wrongdoing or illegal activity. The company will sign a corporate integrity agreement with the Office of the Inspector General for the Department of Health and Human Services, as part of the deal. Medtronic indicated that the money for the settlement had already been set aside before the companies’ merger closed, so it should not affect the bottom line. Experienced trial lawyer Doug Landau has noticed that Wall Street likes to know that sort of thing. Stockholders, like the major insurance companies, like to know “how much ?” and “when ?” in assessing risk and loss data.

This entry was posted on Friday, May 23rd, 2008 at 10:59 am and is filed under Defective Products, Insurance Coverage, Medical Information, Working with Doctors. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.