Meet the Crooks Behind Your New Knee

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You’ve read about all the jostling behind the scenes in Washington’s quest to reform health-care: Big Pharma cutting a $80 billion backdoor deal with the White House, health insurers fighting tooth and nail against a public option, all affected parties and industries positioning themselves to reap the benefits of an overhaul of our $2.5 trillion health-care system. But there’s another industry, one you’ve likely heard less about in the debate, that also stands to win or lose from reform: medical device makers.

The companies bringing you artificial hips, stents, defibrillators, and much more, medical device makers have not cut a deal with the White House or Democratic lawmakers, and face new taxes costing $20 billion or more if the legislation now circulating in Congress becomes law. But as writer Peter Stone points out in his story “Take Two Kickbacks” in Mother Jones November/December issue, a lot more than tougher taxes is in order to reform the fraud-ridden, flawed medical device industry.

Stone’s story highlights the prevalence of doctors receiving lucrative kickbacks in exchange for using and promoting a company’s medical products. This kind of illegal plying is so widespread, Stone reports, that between June 2006 and July 2009, device makers paid $535 million to the federal government for illegal marketing activities. One example: In 2006, Stone writes, device maker Medtronic “agreed to pay the feds $40 million to settle allegations that from 1998 through 2003 it had set up sham consulting and royalty agreements, trips to strip clubs in Tennessee, and other incentives to entice surgeons to use its spinal products.” Though the consequences of these kinds of deals can be fatal, they’re hardly novel in an industry plagued by graft and fraud. 

If Stone’s story shows us anything, it’s that, like health insurers and drug makers, the medical device industry is long, long overdue for reform, too.

THE BIG PICTURE

You expect the big picture, and it's our job at Mother Jones to give it to you. And right now, so many of the troubles we face are the making not of a virus, but of the quest for profit, political or economic (and not just from the man in the White House who could have offered leadership and comfort but instead gave us bleach).

In "News Is Just Like Waste Management," we unpack what the coronavirus crisis has meant for journalism, including Mother Jones’, and how we can rise to the challenge. If you're able to, this is a critical moment to support our nonprofit journalism with a donation: We've scoured our budget and made the cuts we can without impairing our mission, and we hope to raise $400,000 from our community of online readers to help keep our big reporting projects going because this extraordinary pandemic-plus-election year is no time to pull back.

THE BIG PICTURE

You expect the big picture, and it's our job at Mother Jones to give it to you. And right now, so many of the troubles we face are the making not of a virus, but of the quest for profit, political or economic (and not just from the man in the White House who could have offered leadership and comfort but instead gave us bleach).

In "News Is Just Like Waste Management," we unpack what the coronavirus crisis has meant for journalism, including Mother Jones’, and how we can rise to the challenge. If you're able to, this is a critical moment to support our nonprofit journalism with a donation: We've scoured our budget and made the cuts we can without impairing our mission, and we hope to raise $400,000 from our community of online readers to help keep our big reporting projects going because this extraordinary pandemic-plus-election year is no time to pull back.

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