From: Becker Scott <>
Subject: Federal Government Examines Requiring the Disclosure of Medical Device Pricing; Orthopedics Manufacturers Reveal Consultant Payment Data; ASC Review Circulation Increasing to 25,000 for Jan./Feb. Issue


November 15, 2007
In This Issue
Early Registration Ends Monday for Dec. 5 Webinar, "Key Thoughts on the Orthopedics Industry"
Sens. Grassley and Specter Introduce Bill Requiring Medical Device Manufacturers to Publicly Report Pricing
Orthopedic Device Makers Reveal Consultant Payment Info; OIG to Examine Physician Liability
Two Openings: Assistant Director of Business Office Operations, Experienced Operations Professional
News and Notes
Companies to Watch
Newest Webinar ad w. Emily
Early Registration Ends Monday for Dec. 5 Webinar, "Key Thoughts on the Orthopedics Industry"

Over the next several years, there is likely to be no more important specialty for ASCs than orthopedics. ASCs are truly becoming a business of haves and have-nots. This Webinar will provide guidance on the single most significant specialty for ASCs. The presentation will cover expected changes in orthopedics for the next five years, plus how ASCs, hospitals and medical device companies should work with orthopedics surgeons.

At a Glance: "Key Thoughts on The Orthopedics Industry"

What you will learn: There are two key issues that will be the focus of the Webinar:

  1. A forecast for the next 10 years in orthopedics; and

  2. how ASCs, hospitals and medical device companies should work with orthopedic surgeons.

Who should attend: C-level hospital leadership, vice presidents and other leaders who who work in a orthopedic-physician-relations capacity, orthopedic physician leaders, ASC administrators, ASC owners, and ASC and medical device companies.

When: Wednesday, Dec. 5 at 2 p.m. CST (running time: 60 to 90 minutes)

About the speakers: John Cherf, MD, MBA, MPH, is an orthopedic surgeon at the Chicago Institute of Orthopedics, a clinical advisor for Sg2 and a thought-leader in orthopedics. Dr. Cherf founded the Midwest Orthopedic Institute, an orthopedic physicians group with full integration of diagnostic imaging, rehabilitation, ambulatory surgery and occupational medicine under one roof. He presently practices in Chicago and is once of the founding members of the Chicago Institute of Orthopedics. With more than 15 years' experience and fellowship training in sports medicine, he has served as team physician for several collegiate and professional sports teams in addition to U.S. Soccer. Dr. Cherf has published in numerous peer review journals, speaks internationally, and serves on several advisory boards for healthcare-related businesses.

Scott Becker, JD, CPA, is a partner in and co-chair of the health depatment at the national law firm of McGuireWoods in Chicago. For more information, visit his McGuireWoods profile or

Cost: $199 if registering before Nov. 19 (save $50!).

How to register: There are five easy ways.

  1. Fill out and submit the online registration form.

  2. E-mail Jessica Cole.

  3. Call us toll-free at (800) 417-2035.

  4. Download the printable registration, fill out and fax to (866) 678-5755.

  5. Download the printable registration, fill out and mail to 315 Vernon Ave., Glencoe, IL 60022.
AAASC membership ad
Sens. Grassley and Specter Introduce Bill Requiring Medical Device Manufacturers to Publicly Report Pricing

Orthopedic and cardiovascular medical device manufacturers are increasingly subject to a great deal of federal scrutiny (see "Orthopedic Device Makers Reveal Consultant Payment Info; OIG to Examine Physician Liability" below). Further, throughout the healthcare industry, there is a tremendous concern about the amount paid by hospitals and other healthcare providers for high-technology devices. A new bill, recently submitted to the Senate Finance Committe for consideration, takes aim at both issues.

The Transparency in Medical Device Pricing Act of 2007 would amend the Social Security Act to require any manufacturer of an implantable medical device to report the average and median sales price of each covered medical device. [S. 2221, 110th Cong. (2007).] The information would then be made publicly available on the CMS website. In introducing the bill on Oct. 23, Sen. Chuck Grassley (R-Iowa) and Sen. Arlen Specter (R-Pa.) argued that price transparency is necessary if hospitals are to have the equal footing with device suppliers when it comes to negotiating prices. Confidentiality agreements prevent hospitals from knowing exactly what the fair market value is, leading to some hospitals paying significantly more than others for the same device.

Compliance would not only be a condition of receiving direct or indirect payments under Medicare, Medicaid, and SCHIP; the statute also imposes harsh monetary sanctions for failure to comply that have the potential to add up quickly. A manufacturer would be subject to penalties ranging from $10,000 to $100,000 for each compliance failure. The same penalty range applies to any misrepresentation a manufacturer makes, and can be assessed for each day the information remains on the Web site.

-- Kelly A. Morgan, JD

Jan.-Feb. Issue ad
Orthopedic Device Makers Reveal Consultant Payment Info; OIG to Examine Physician Liability

Now that five orthopedic device manufacturers have disclosed their financial relationships with physicians, the OIG says it will be using this information to "determine whether some doctors could be liable in accepting illegal payments from those manufacturers," according to a report from BNA Health Care News.

The five manufacturers produce nearly 95 percent of the orthopedic devices marketed in the United States, says the Department of Justice. Four of them -- Biomet, DePuy Orthopaedics (a subsidiary of Johnson & Johnson), Smith & Nephew and Zimmer -- entered into deferred prosecution agreements with the Justice Department earlier this year, agreeing to pay a total of $311 million in penalties. The fifth, Stryker Orthopedics, cooperated with investigators and did not face criminal charges, but was still required to enter into a non-prosecution agreement involving increased disclosure, payment controls and scrutiny.

Two Openings: Assistant Director of Business Office Operations and Experienced Operations Professional

Assistant director of business office operations. There is an immediate opening for an assistant director of business office operations for an ambulatory surgery development and management company. Applicant must be able to compile financial analysis and key performance indicators; train and monitor new business office managers on all facets of business office operations, including scheduling, coding, billing, collections, accounts payable and physician relations related to business office functions; provide ongoing training, and supervision and performance assessment to existing business offices; and possess strong computer and interpersonal skills. Candidate must also be able to travel. ASC experience strongly desired. We are looking for a dynamic individual who can multitask and thrive in a fast paced environment.

Fax resume and references to (225) 753-7513 or e-mail

Experienced operations professional. Meridian Surgical Partners, a national ASC development and management company headquartered in Nashville, Tenn., seeks an experienced operations professional. Qualified applicants must have at least five years of industry experience. Responsibilities to include clinical operations, financial/budget oversight, physician recruitment and partner/board relations for multiple facilities. Position will require travel and offers an excellent benefit package and salary commensurate with experience.

Qualified applicants, please email resume and cover letter to Meridian's HR director.

June conf ad w Emily
News and Notes

ASC Review circulation increasing to 25,000. The circulation for the Jan./Feb. issue of the Becker's ASC Review will be increased to 25,000. This will include each surgery center in the country plus approximately 19,000 surgeons and proceduralists. Recipients will include orthopedic surgeons, gastroenterologists, and ear, nose and throat physicans. Should you have questions about advertising in the Becker's ASC Review please e-mail Jessica Cole or call her at (312) 505-9387; e-mail Emily Noyes or call her at (773) 454-7445; or e-mail Ryan Kiernan or call him at (202) 337-1893.

The issue will highlight 40 companies to watch in the ASC industry, profiting through bariatrics and the orthopedic spine medical device market letter.

GHN Online joins Texas Workers' Compensation Stakeholder Collaborative. While the healthcare industry has moved to EDI transaction processing, the Texas Department of Insurance, Division of Workers' Compensation's provider-to-payer transactions remain a paper process. The Collaborative is a major initiative in the state of Texas, and GHN Online has signed on to provide domain expertise in helping the state implement technologies required for end-to-end transaction processing and HIPAA compliancy, the company announced. The Collaborative has been formed to ensure that, by Jan. 1, the workers compensation division will be compliant with the HIPAA electronic billing requirements.

ASC Communications adds new vice president and account manager. We are delighted to add Emily Noyes to our team. She will be acting as a vice president and account manager. If you advertise or exhibit with ASC Communications, you will likely hear from her shortly. Her goal and ASC Communications' goal is to help advertisers and people better access their target market. Aside from providing the vehicle for doing so, we are happy to help develop special programs, targeted mailings, distinct Webinars and other concepts to help people target and reach their market in a smart and cost-effective way. You can e-mail her at

Speakers needed. For the Orthopedics-, Spine-, and Pain Management-Driven ASC Conference, to be held in Chicago June 19 to 21, we are specifically seeking a speaker or two regarding the use of newer medical devices and implants and other products in ASCs. We are also seeking speakers related to business strategies for orthopedic practices; related to using out-of-network for ASCs; and related to handling total joints and more complex procedures in ASCs. If you have a suggestion, please e-mail Scott Becker or call him at (312) 750-6016.

Call for nominations: bariatric surgery product roundup. In addition to the annual list of 40 companies to watch in the ASC sector, our Jan./Feb. issue of the Becker's ASC Review will feature a story about adding bariatric surgery to ASCs profitably and intelligently. A roundup of interesting products, equipment or services for bariatric surgery will be included; if you have a nomination, please e-mail Stephanie Wasek by Friday, Nov. 16.

For information on the issue or suggestions, please e-mail Scott Becker. Advertising for the issue, which will be distributed to 20,000 people, closes on Dec. 1.

Sponsorships available for next Webinar. We have two sponsorships available for the next installment in our "Extraordinary Leaders in Healthcare" Webinar series. "Key Thoughts on the Future of the Orthopedics Industry" will be held Dec. 5. Please e-mail Jessica or call her at (312) 505-, or e-mail Ryan or call him at (212) 337- for more information.

Ask Scott Becker. If you have an ASC-related legal or business question, e-mail Scott, and we'll publish the answer in a future E-Weekly. Please indicate when asking whether you prefer to remain anonymous.

Subscribe to ASC Review
Companies to Watch

We are delighted to highlight the following companies in this week's E-Weekly.

The Sanders Trust. The Sanders Trust owns, acquires and develops ASC buildings and medical office buildings nationwide. Owners of ASC "bricks and mortar" who sell their facilities and lease them back from The Sanders Trust benefit by eliminating debt guarantees and freeing capital from an illiquid investment while maintaining control over building management and operation.

Founded in 1997, The Sanders Trust is lead by a 20-year healthcare veteran, CEO Rance Sanders, and by the former Green Bay Packer and NFL Hall of Fame quarterback Bart Starr.

To learn more about how The Sanders Trust can improve your personal balance sheet, visit its Web site, e-mail Bruce Bright or call him at (205) 298-0809 to discuss the sale of your ASC building or MOB.

SourceMedical Solutions. SourceMedical is the leading provider of outpatient information solutions and services, collectively serving ASCs, rehabilitation clinics and diagnostic imaging centers. Its unique end-to-end systems improve operational efficiency and cash flow while empowering healthcare facilities to deliver a higher standard of patient care. SourceMedical's solutions strengthen and enhance overall clinical, financial and administrative processes. More than 2000 ASCs and surgical hospitals nationwide use the company's Vision, AdvantX and SurgiSource solutions. SourceMedical continues to invest in research and development to maintain its leadership position with innovative products and services that satisfy the specific requirements of this unique market.

ProVation Medical. ProVation MD software is designed by 12 full-time, in-house physicians and coders, working together with more than 75 clinician and coder consultants to create software that mimics a physician's or nurse's natural preferences and workflows. At its core, ProVation is intuitive software developed by physicians to help their colleagues focus on patients rather than paperwork. ProVation software enhances patient safety through better documentation, automatic data tracking, and quality improvement. This includes the automated population of post-procedure orders and patient instructions; automated recall functionalities for patient follow-up and pathology results due; and device tracking and many other features. The software prompts the clinician to document efficiently, then generates the corresponding CPT and ICD-9 codes and CCI edits ready for review by HIM and coding staff. The result is coder-ready documentation delivering compliance, proper reimbursement, and shortened days in accounts receivable. For more information e-mail Laura Gilbert.

Foundation Surgery Affiliates.Foundation Surgery Affiliates is a healthcare management organization specializing in project development, innovative facility design, partner recruitment and facility operations for ASCs, medical office buildings, surgical hospitals and bariatric hospitals and healthplexes.

Foundation, established in 1996, is founded on the values of excellence, leadership, integrity and compassion. We are committed to continually delivering the highest quality of services for our physician partners and patient care in the industry.

More information about FSA can be found at

Eveia Health Consulting & Management Company Founded by I. Naya Kehayes, MPH, Eveia Health Consulting & Management is comprised of a team of seasoned professionals who are experts in reimbursement management, managed care contracting, and business management with a specialization in ASCs and surgical practices. Senior Management serve as advisors to national corporations and provide leadership in health policy initiatives related to reimbursement on behalf of ASCs at both state and federal levels. Eveia's services include contracting and contract analysis, acting as administrator and manager, customizing revenue management, financial analysis, and enhancing and maximizing the financial position of clients. In addition, Eveia implements training and reimbursement calculators, and it provides feasibility studies, payor due diligence, fee schedule development and coordination of business related activities. Eveia has serviced more than 100 clients in 25 states since its inception in 1998. For more information, or call her at (425) 657-0494, or visit

*           *           *

If you have any questions on any of the items listed in this letter, please contact me at (312) 750-6016 or by email at

Very truly yours,
Scott Becker

Scott Becker, JD, CPA
(312) 750-6016

Becker's ASC Review
is a publication of
ASC Communications, Inc.
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    Key Thoughts on the Orthopedic Industry
    A Webinar from ASC Communications
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