Wednesday, October 26, 2005

DOJ Investigates Medical Business Practices

According to the New York Times, the Boston US attorney has subpoenaed information about possible kickback and fraud violations from three of the nation's biggest medical device makers.

In addition to the Boston US Attorney's investigation of possible barred payments made by Medtronic, Guidant and St. Jude Medical, the Minneapolis US Attorney has launched a separate investigation. The latter asked for information about Guidant's defibrillator and pacemaker. The devices were recalled several months ago.

In an ideal world, the free market would regulate the behavior of companies and investigations would be limited to contract enforcement. In the real world we live in, the pressure to make a quarterly profit can distort judgment and result in tragedy.

Here's hoping these investigations turn up empty handed.

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