Issue link: https://beckershealthcare.uberflip.com/i/548475
59 Becker's ASC 22nd Annual Meeting - The Business and Operations of ASCs – Call (800) 417-2035 October 22 - 24, 2015 • Swissôtel - Chicago, Illinois learn more & register at https://www.regonline.com/22ndAnnualASC SAVE THE DATE Becker's ASC 22nd Annual Meeting The Business and Operations of ASCs F ormer OtisMed CEO Charli Chi will go to prison for his roll in marketing and distrib- uting knee replacement tools that weren't cleared by the FDA, according to News Works. "Today's sentencing of OtisMed's CEO ought to send a clear message to others in positions of authority within the medical device and pharma- ceutical industries: the Department of Justice will vigorously prosecute not only corporations, but also the individuals at their helm who are respon- sible for endangering public health and safety in pursuit of profit," said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department's Civil Division. Here are five things to know: 1. Mr. Chi pled guilty to distributing surgical tools for knee replacements using an FDA- rejected marking plan. 2. OtisMed has since been purchased by Stryker. The company was fined more than $80 million for criminal and civil charges. 3. Mr. Chi was sentenced to 24 months in prison. 4. Stryker wasn't aware of OtisMed's illegal ac- tions when purchasing the company, but they did cooperate with the FDA investigation. 5. OtisMed sold cutting guides before clear- ing claims about the device, and the FDA later rejected those claims. "The defendant betrayed the trust of patients whose doctors were using his unapproved surgi- cal device for a serious medical procedure," said U.S. Attorney for the District of New Jersey Paul J. Fishman. "With everything else people have to deal with when they are facing surgery, they shouldn't have to worry whether their doctor is using equipment that has been approved for use. The punishment meted out to Chi and his com- pany is appropriate." n Former OtisMed CEO Gets 2 Years in Prison in Knee Device Scandal — 5 Key Notes By Laura Dyrda Healthcare Fraud: A $98B Industry — 10 Things to Know By Mary Rechtoris The United States healthcare industry is losing billions of dollars from healthcare fraud. Here are 10 things to know: 1. Medicaid spends $415 billion annually. 2. Medicare spends approximately $600 billion each year. 3. Total health spending in the United States amounts to a staggering $2.7 trillion. 4. Donald Berwick, MD, former head of the Centers for Medicare and Medicaid Services, and Andrew Hackbarth of RAND, estimated fraud added $98 billion to annual Medicare and Medicaid spending. 5. Fraud also accounted for an additional $272 billion in spending across the entire health system. 6. Officials in Los Angeles discovered a physician who collected $23 mil- lion for 1,000 power wheelchairs and equipments his patients didn't need. 7. The United States Justice Departments have charged 243 people to- taling $712 million in false billings to Medicare and Medicaid after conducting an eight year long campaign. 8. Healthcare fraud is not localized in one area, but is a national prob- lem occurring in major cities across the United States. 9. A Miami healthcare official carried out a $205 million scam. He was later sentenced to 50 years in jail. 10. The federal government implemented a "strike force" that charged 2,300 people for scams worth $7 billion. n Use promo code: ASCFREE at check out and recieve FREE GROUND SHIPPING on your next order of $50 or more.* *Promo code valid for (1) one use only. Offer expires 12/31/15. Contact eSutures.com at 888-416-2409 for pricing and availability.