Feds allege spinal surgery kickback scheme

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During a secretly recorded meeting, McClatchy News reports that a salesman for Reliance Medical Systems promised spinal surgeons that within a month or two of joining the company's program, they could collect enough money to pay for their kids' college educations. Meanwhile, The Oregonian reports the FBI is probing a body donation program run by Legacy Health in Portland.

McClatchy: Justice Department: Kickback Scheme Could Enrich Doctors In A Hurry
During a meeting that was secretly recorded, a salesman for Reliance Medical Systems promised that within a month or two of joining its illicit kickback scheme, spinal surgeons could collect enough money to pay for their kids' college educations, Justice Department lawyers charge. Taxpayers were the multimillion-dollar sugar daddies in this plot, initially uncovered by two doctors-turned-whistle blowers who could collect a sizable reward under a law compensating those whose tips lead to federal financial recoveries (Gordon, 9/8).

Oregonian: FBI Investigates Legacy Health Body Donation Program, But Details Are Hazy
The Federal Bureau of Investigation is investigating a body donation program run by Legacy Health in Portland, raising concerns among transplant advocates that the news could have a backlash on programs that operate under tighter rules. The FBI and Legacy are not discussing the investigation other than to confirm its existence and that it involves a body donation program under the Legacy Research Institute, located at 1225 NE 2nd Avenue. "Other than confirming that there is an FBI investigation into the Legacy Body Donation Program, there isn't much more I can say," said FBI special agent David Porter, a spokesman in the bureau's Detroit field office. Willamette Week broke the news of the investigation, saying the bureau is investigating allegations that include failure to conduct health screenings on the bodies and notify families how the bodies were used (Budnick, 9/8).


http://www.kaiserhealthnews.orgThis article was reprinted from kaiserhealthnews.org with permission from the Henry J. Kaiser Family Foundation. Kaiser Health News, an editorially independent news service, is a program of the Kaiser Family Foundation, a nonpartisan health care policy research organization unaffiliated with Kaiser Permanente.

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