Medtronic Inc. has voluntarily begun publishing its consulting and royalty payments to doctors, with first-quarter disclosed payments totaling $15.7 million.
The move comes in advance of a federal law mandating such disclosures by 2013, and after Medtronic has drawn scrutiny in recent years for its payments to orthopedic surgeons. Payments from device makers to doctors have increasingly attracted attention from lawmakers and regulators who fear that the funds are a means of helping companies pay doctors to recommend their products.
Medtronic reported making payments of more than $5,000 to 227 doctors and doctors’ groups during the quarter. Payments less than $5,000 weren’t reported. Of the $15.7 million, the vast majority, $14.2 million, went to orthopedic surgeons and specialists, according to the Wall Street Journal.
The largest recipient was Tennessee orthopedic surgeon Kevin Foley, who was paid $3.97 million in the quarter for spine-surgery inventions such as surgical plates, rods and screws.
“As an industry leader, Medtronic wants to be at the forefront of helping to establish best practices that will enhance patient and public confidence in the collaborative model,” CEO Bill Hawkins said in a statement from the company.
U.S. Sen. Herb Kohl, D-Wisconsin, praised the company’s decision to “stay ahead of the transparency curve,” according to the statement.
Medtronic plans to update its physician payment registry every quarter.
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In 2006, Medtronic agreed to pay $40 million to settle two federal lawsuits alleging that it paid kickbacks to physicians in exchange for using its spinal products