Something smells fishy with doc-owned medtech distributors | On Call

July 30, 2013 by Sony Salzman

The Justice Dept. is looking into potential wrongdoing by surgeons who use their own medical device distribution centers to pocket commissions.

MassDevice On Call

MASSDEVICE ON CALL — The Justice Dept. is taking a closer look at physician-owned distributorships, warning that the influence that doctors have over hospitals purchasing practices leaves room for some serious conflicts of interest.

Michigan spine surgeon Dr. Aria Sabit took center stage in the DOJ's broader investigation of POD centers that allow docs to take a cut of profits.

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Sabit, an Apex Medical Technologies shareholder, continued to use the company's implants despite obvious conflict of interest, according to a Wall Street Journal report citing "a person familiar with the matter." The neurosurgery medical director at Michigan's McLaren Lapeer Region hospital also had operation and distribution privileges at Detroit Medical Center and the Doctors' Hospital of Michigan, according to the report.