Hip Replacement Manufacturer Depuy Paid More Than $50 Million To Consultants In 2009

In September 2007, Johnson & Johnson subsidiary DePuy Orthopaedics paid a heavy fine

and agreed to more transparent consultant disclosure for its role in a doctor kickback scandal.

The U.S. Department of Justice launched an investigation in 2005 that focused on five major medical device manufacturers, including DePuy. Its efforts revealed that the five companies compensated doctors by means of money and trips for consulting services and an agreement to use those companies products exclusively.

DePuy admitted no wrongdoing in the scandal but nonetheless was hit with a fine of $84.7, an amount based on its 2007 market share. DePuy was also required to make consulting deals accessible to the public on a company Web site.

The Rottenstein Law Group made an effort recently to access this information, and discovered that in 2009, DePuy paid more than $50 million to doctors and institutions. More specifically, the company paid royalties (including interest payments resulting from delayed payments) and items of valuesuch as patient educational materials, anatomic bone models and wall charts that are provided to helpeducate patients about joint replacement.

DePuy indicated on its Web site that it compensated surgeons in exchange for educational, expert, and product development services. The company paid a total of $50,426,779 to consultants in 2009. Individual payments included $42,028 to Alexander Gordon of Chicago and $7,702,136 to Thomas Thornhill of Boston. DePuys 2010 consultant compensation (to date) stands at $20,585,576.

This scandal was just the first of several setbacks for DePuy over the last few years. In August, the orthopedic manufacturer issued a recall of the ASR XL Acetabular System and the ASR Hip Resurfacing System due to a design flaw that requires 1 out of 8 recipients to undergo a second hip replacement surgery. Thousands of lawsuits are expected to be filed by patients seeking compensation for economic losses as well as pain and suffering.

Most recently, DePuy was one of several companies targeted in a Columbia University study that documented undisclosed payments from medical device manufacturers to surgeons who published articles in medical journals. According to the study, DePuy paid $63 million to consultants in 2007, many of whom authored pieces about the orthopedics industry in 2008. Similar to the 2007 scandal, this new information raises concerns about an economic conflict of interest negatively affecting patient care.

If you received one of the recalled ASR devices from DePuy, contact your doctor as soon as possible to schedule testing on your replacement hip. This is important for your health and is also a vital first step for ASR recipients who are considering filing a hip replacement lawsuit against DePuy.

by: Katherine Russel

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