Item 1 in today's news:
Former UnitedHealth CEO Bill McGuire finally settled with the Securities and Exchange Commission over his stock options scandal. In all, he pays back $618 million. But don't lose sight of the fact he still holds options that are valued at $1.8 billion.
Item 2 in today's news:
A former department head fired from the Cleveland Clinic claims there are pervasive conflicts of interest at the world-renowned hospital. The Wall Street Journal reports the former head of the clnic's vascular intervention unit (a big bucks operation),
"said a number of the hospital's top doctors promote devices and treatments that they have a financial interest in, sometimes without informing patients. ... His suit alleges the clinic has been "indifferent" to financial conflicts of interest and that such situations are "widespread and pervasive." Those conflicts start at the top with clinic chief executive Delos "Toby" Cosgrove, according to the complaint. The lawsuit says the clinic heavily promotes and uses an invention of Dr. Cosgrove's in patients undergoing heart-valve surgery. Dr. Cosgrove and the clinic both receive royalties from sales of the product, known as the Cosgrove-Edwards ring and marketed by Edwards Lifesciences Corp. The lawsuit says patients aren't given the choice of using competing rings or told that the hospital and its chief executive profit from sales of the Cosgrove-Edwards ring."
Some have called the issues of conflict of interest in patient care "a ticking time bomb" in health care.
Posted by schwitz at December 7, 2007 08:26 AM | TrackBackCleveland Clinic and its physicians have long been involved in such practices as described above. Although Sabanes Oxley does not apply to non-for-profit organizations, many do agree in principles that the statute offers a good framework to implement internal controls. Cleveland Clinic, under its non-for-profit charter does not pay a dime to the city, state or Federal government while on its balance sheet, it documents charity care at its full value thus artificially inflating the amount. This is a moment when Feds need to step in and do the same that was done for Enron, WorldCom. State is not likely to do it. CCF has good relationships with local legislature. Sad that our institution's top docs are so sick.
Posted by: Cleveland Clinic Ex Fan at December 10, 2007 09:00 AM