Issue link: https://beckershealthcare.uberflip.com/i/1305916
16 DEVICES & IMPLANTS NuVasive loses ground to Alphatec in court battle over 2017 executive departure By Angie Stewart A lphatec Holdings secured a partial victory Aug. 31 in a lawsuit brought by competitor NuVasive, according to court documents. e court battle began when NuVasive sued Alphatec Holdings and Patrick Miles in 2017, alleging that Mr. Miles conspired during his 17-year tenure at NuVasive to "decamp to Al- phatec, taking confidential information, em- ployees and customers with him," according to court documents. In 2016, Mr. Miles allegedly advised NuVa- sive against acquiring Alphatec, and in 2017, he secretly executed a securities purchase agreement to buy $500,000 of Alphatec stock in a private placement. Mr. Miles reportedly resigned from his po- sitions as vice chairman and board member at NuVasive Oct. 1, 2017, and became exec- utive chairman at Alphatec the next day. He also served as NuVasive's president and COO before he joined Alphatec — where he even- tually became CEO. Aer Mr. Miles' departure, NuVasive accused Alphatec of unfair competition; tortious in- terference with contract; tortious interference with prospective economic advantage; aiding and abetting breach of fiduciary duty; and deceptive and unfair trade practices under Florida and North Carolina law. In its latest decision, the Delaware Chancery Court struck down NuVasive's claim that Al- phatec aided and abetted breach of fiduciary duty, among other allegations, on the grounds that the case was pled improperly. It was the third time the dispute has been narrowed, ac- cording to Bloomberg Law. In 2019, a court rejected NuVasive's non-com- petition claims, finding that its non-compete agreement with Mr. Miles was void under California law. If the non-compete agreement had been viable, NuVasive might have been able to support a claim of aiding and abetting breach of a non-compete — not breach of fi- duciary duty. "e pled facts would need to support an inference that Alphatec not only intended to lure Miles away from NuVasive, but also that it materially supported or encouraged the purloining of NuVasive confidential informa- tion while Miles owed fiduciary duties." n Robotics is the next step for spine, total joints: 3 administrators weigh in By Alan Condon R obotics is picking up steam in spine and orthope- dics, with emerging surgeons particularly drawn to the latest technologies in their specialties. Nikki Williams, clinical director at Lakeland (Fla.) Surgical & Diagnostic Center; Brooke Day, administrator at Hastings (Neb.) Surgical Center; and Alfonso del Granado, adminis- trator at Covenant High Plains Surgery Center in Lubbock, Texas, discussed investing in robotics and the future of complex spine procedures. Note: Responses were lightly edited for style and clarity. Question: Five years ago, it was still rather revolution- ary to have total joints and complex spine in ASCs. Now it is more commonplace. What is the next step for these procedures? Mr. del Granado: For total joints, the next step is robot- ics. Unfortunately, it's expensive, but if you're going to attract surgeons — especially some of the younger sur- geons who are pretty much in love with their robots and don't want to work without them — you have to make the investment. Ms. Williams: I've definitely seen the trend toward robot- ics. We're not doing total joints, but every [surgical or ASC] magazine you open, you see that people are doing these. I think if you're getting a lot of younger surgeons, they're going to want modern technology. I know that there is an expense, but I think you have to weigh it up, see what's best for you and see how you can accommodate the surgeons. It's creating a fine balance, but a lot of younger surgeons want the new technology, and that's where we have to ac- commodate them. Ms. Day: I wouldn't be surprised if you end up seeing facilities built specifically in larger markets to treat spine. We've discussed having an extended-stay suite. [Our man- agement company] invested a lot on their end into look- ing into how that pencils out. As far as reimbursement is concerned, that is yet to be determined. But I think any- thing that doesn't involve a hospital stay could decrease the overall cost of care. I also think, at least on my end in rural Nebraska, more and more physicians are wanting us to do cases that are patients with more of a complex health history. So, I just think we're going to see more and more of a push to do cases that are outside of our normal patient guidelines. n