Deals Between Surgeons, Medical-Device Makers Draw Scrutiny

The Wall Street Journal reports on a civil investigation into a network of physician-owned spinal-implant distributorships. Also, the Center for Public Integrity notes that budget cuts could cause several high-profile federal health-care fraud and abuse investigations to be scaled back.

The Wall Street Journal: Surgeons Eyed Over Deals With Medical-Device Makers
Federal prosecutors' scrutiny of Dr. Sabit is part of a broader civil investigation into a network of physician-owned spinal-implant distributorships operated by two former medical-device company employees, the people with knowledge of the matter say. This network, which was run out of Utah and comprised at least 11 physician-owned distributorships in six states, generated tens of millions of dollars in profits for its investors over six years (Carreyou, 7/25).

The Center for Public Integrity/Washington Post: Budget Cuts force Scale Back Of Health-Care Fraud Investigations
Facing major budget and staff cuts, federal officials are scaling back several high-profile health-care fraud and abuse investigations, including an audit of the state insurance exchanges that are set to open later this year as a key provision of the Affordable Care Act (Schulte, 7/25).

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