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Medtronic To Disclose Payments To Doctors

Company gets ahead of proposed regulations

By Mark Huffman
ConsumerAffairs.com

February 25, 2009

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Medical device maker Medtronic Inc. says it will begin disclosing the payments it makes to doctors. The first disclosure is scheduled for March 2011, and will cover the payments made to physicians during 2010.

The company said it will report the amount paid in consulting fees, royalties or honoraria for physicians who receive payments of $5,000 or more per year from Medtronic. Consulting agreements include counsel for areas such as education and training, clinical trial design and administration, and product design and safety. The company currently plans to report these data on its company website.

"Relationships between industry and doctors are essential to innovation, education and training in our industry," said Bill Hawkins, chairman and CEO. "Through greater transparency about the nature of these relationships, we will help people better understand how important they are to developing life-saving and enhancing products for patients who need them."

The relationship between drug and device manufacturers and the medical profession has come under growing scrutiny by consumer advocates and members of Congress in recent years. Pfizer and Eli Lilly have already begun disclosing the money they pay doctors.

Medtronic's action comes just ahead of a possible mandate from Congress. Sens. Charles Grassley, R-Iowa, and Herb Kohl, D-Wis., have specifically urged Medtronic to provide details about the doctors who receive payments from the company for consulting services. They have proposed a bill, called the Physician Payments Sunshine Act. The legislation would require all medical-technology firms to publicly disclose payments to doctors.

Medtronic said it supports the bill, saying it would ensure a level playing field and consistency in reporting.

Critics of drug and device maker payments to doctors have said the payments create a potential conflict of interest in a doctor’s prescriptions for patients.

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