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  • orthosearch orthosearch Jun 27, 2006 3:49 PM Flag

    Ortho- ZMH vs ABT


    Its not just ZMH, its all the ortho companies. Here's a response I wrote to a poster about it on the STY MB. 2 Wongs will definitely make it right; especially after a several lubricating libations.


    My guess is that we will see some slapping of hands and fines, but no executive jail time. First of all, most of these fella's have had their legal staff's follow to the letter all of the Safe Harbor Act provisions since that was passed a number of years ago.

    Secondly, no distributor is typically involved in any contractural arrangement with a doctor or a hospital. That is all done at corporate with a very legal eagle eye on such contracts.

    Third point, what you really have here, IMO, is a pissing content between the HMO's/hospital's, the Dr's, and the company's that was initiated by Senator Bill Frist, who is trying to protect his family's HCA profits and interests. So he intiated the request for DOJ to investigate; along with Sen Grass(R-IA)about the so-called payoffs on implants. The hospital's and HMO's want to increase their profitability and margins by deciding which companies implant they will use and then squeezing the companies over price. Now if you believe or think for one moment that they will reduce their pricing for the procedures to medicare or the insurance companies..NFW. The other big issue at work here is the Doctors. They have told the hospitals, Hey we can jointly decide on which implant to use, but in exchange for that you will also take a bigger share of my liability cost piece in exchange for that. Hospitals are also saying ....NFW. So the Doc's are saying forget it.... If I put them in, and I am fully liable, then I get to choose what I want...simple as that.

    Now will all of this come out in a DOJ investigation...Most Likely No. This would be a phenomenal public relations nightmare for Doc's, Co's, Hospitals, Fed Govt, and Insurers. It would absolutely corrupt the peoples trust in their medical system with everyone scrambling for cover when the lid blows off. As for a joint announcement{By the companies on this issue}, why, the quieter it is dispatched, the better for the company's, doctor's, hospitals, HMO's, Fed Govt, and Insurers. BTW, DOJ issued subpoenas to over three hundred FL orthopods, trying to get someone to squeal; hoping that those without company development/consulting contracts would squeal on those that do, but understand it really was not successful and only angered the Docs.

    As for the markets and stock prices, unless the government, Senator's Grassley and/or Frist raise a larger stink it will quietly be calmed down with minimal impact on the stock in 3-6 months; IMO.

    Just my thoughts,

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    • Ortho,

      Anything wrong with their joint replacements?


    • Ortho- I know with all those pissed-off surgeons I'm not getting a TKR soon, if ever and I may buy my own fake knee.I told you not to take that all-expense paid cruise to Tahiti from Zimmer, no safe harbor.Assume you are not buying but holding? Good Luck-Plute

      • 1 Reply to plutothecat_17
      • Plute.....

        Exactly, am holding. My BMY spin-off was at $24/share. Have sold some when in the 70's, but otherwise am holding. I may buy if it goes in the 40's. And the surgeons are only pissed off at the manipulators of the HMO's telling them how to practice medicine, generally all are true professionals and have the patients best interests at heart and will not try to screw up a procedure. So don't live with the pain and restrictions of a knee where all of the meniscal cartilage has been worn away from running from the jealous husbands, who wives you seduced on those WestPac tours, get your knee replaced, you'll remark like about 99% of patients who have it done..."why didn't I do this sooner?"

        Check Six,

42.84-0.33(-0.76%)4:00 PMEDT