Clark, Love & Hutson, PLLC

Hospitals exploring risk-sharing with device manufacturers

Many Houston residents will need a medical device implant device at some point. These can include hip implants and cardiac devices. These implants can be life-saving for many people but occasionally medical device manufacturers take risks that lead to defective medical devices.

A recent news story is reporting that some of the largest medical device manufacturers are negotiating deals with hospitals to take on performance-based financial music for their implant devices. Cardiac devices are the main focus right now because hospitals may face lower payment rates for patients with congestive heart failure.

These agreements may mean that a manufacturer will return a certain percentage if the device fails to meet a performance goal. Or a hospital may pay more for a device that achieves the manufacturer's quality claims. For example, St. Jude Medical said it will pay a 45 percent rebate if one of their cardiac implants requires a revision within the first year. Medtronic, Boston Scientific and Johnson and Johnson are currently in negotiations with hospitals regarding risk-sharing.

When medical device manufacturers and hospitals make deals based on saving money, patients may be harmed. Medical care can be very expensive but it is important that the implant devices that are put on the market are safe. When a patient has been harmed by a medical device they may wish to talk with a legal professional who is skilled in defective medical devices. An attorney can investigate what went wrong with the medical device and hold the manufacturer responsible. Compensation may be available for medical expenses, pain and suffering and other damages.

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