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The Medical Industry
Business Weekly
July 03, 2008

Other Headlines

House passed plan but Senate failed to stamp its approval. AMA is outraged; ACP dismayed and frustrated. Claims processing now frozen for 10 days.
Plaintiffs' argument fails to delay implementation of controversial program.
MRI and CT ISO teams with California firm.
Second sourcing and repair experts are moonlighting for now.
Company awarded a three-year term of accreditation in digital mammography mobile services as the result of a recent survey by the American College of Radiology.

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More Industry Headlines

Congress Goes on Break Without Blocking Medicare Cuts House passed plan but Senate failed to stamp its approval. AMA is outraged; ACP dismayed and frustrated. Claims processing now frozen for 10 days.

DC Federal Court Refuses Injunction on Medical DME Bidding Program Plaintiffs' argument fails to delay implementation of controversial program.

Visit DOTmed at AHRMM Conference The 46th Annual AHRMM Conference & Exhibition is saddling up in San Antonio, TX this year, from July 20-23. Be sure to visit DOTmed at Booth #736.

Siemens to Cut Workforce? Reports are unconfirmed, but could be significant, projecting a major downsizing of more than 17,000 people worldwide.

Poor Patient Discharge Instructions Often Lead to Harm More than 800 reports submitted from Pennsylvania hospitals identify a variety of problems occurring at discharge; 30 percent of those patients did not receive verbal or written discharge instructions.

PHILIPS Intera 1.5T Mobile MRI -- last chance to get your bid in! Also see the other great lasers, imaging systems, and more... all on your favorite website for used medical equipment!

Bill on DME Bidding Delay Runs Into Challenges From Senate Vote, Bipartisan Opposition House bill fails first Senate try; Senators submit letter urging opposition to delay of DMEPOS bidding program.

Warning by FDA About Bone Growth Products Made by Medtronic, Inc. and Stryker Corp. The U.S. Food and Drug Administration warned that bone growth products made by Medtronic, Inc. and Stryker Corp. have been linked to life-threatening complications when used without approval in neck fusion surgeries.

Caution Urged During Fireworks Season Health panel urges caution with fireworks this holiday.

Automated MRI Technique Assists in Earlier Alzheimer's Diagnosis MRI with automated segmentation quickly and accurately measures tissue loss in the hippocampus, where nerve cell death is pronounced in Alzheimer's.

The Physio-Control LIFEPAK 20
Defibrillator/Monitor is one
of the AEDs subject
to the decree.

Manufacturer of Heart Defibrillator Signs Consent Decree of Permanent Injunction

by Barbara Kram, Editor
Device manufacturer Physio-Control, Inc., its parent company Medtronic, Inc., and their two top executives have signed a consent decree of permanent injunction related to Automatic External Defibrillators (AEDs) manufactured by Physio-Control, Inc.

The consent decree prohibits the manufacture, distribution, and export of specified AEDs at or from Physio-Control's facility in Redmond, Wash., until the devices and facilities have been shown to be in compliance with the Food and Drug Administration's (FDA) current Good Manufacturing Practice (cGMP) requirements, as set forth in the Quality System regulation for devices.

AEDs are portable devices used to restore normal heart rhythm to patients in cardiac arrest (heart attack). Heart attacks can cause ventricular fibrillation, where the heart's electrical signals are uncoordinated and ineffective, resulting in a lack of blood pumped from the heart to the rest of the body. AEDs are applied outside of the body and deliver an electric shock that stuns the heart for a moment, giving it the chance to resume beating effectively.

FDA inspections conducted in October 2006 and January 2008 revealed cGMP deficiencies, including failure to establish and maintain adequate procedures for validating the device design and failure to establish and maintain adequate procedures for implementing corrective and preventive actions. These deficiencies do not necessarily mean that the defibrillators currently on the market will harm patients, but FDA is requiring corrections to ensure the continued availability of safe, effective, and reliable products.

Previous FDA inspections in 2000, 2003 and 2005 showed similar violations. FDA issued warning letters after the 2000 and 2005 inspections, citing the cGMP violations.

The AEDs subject to the decree include:

* LIFEPAK 12
* LIFEPAK 20
* LIFEPAK 500
* LIFEPAK 1000
* LIFEPAK CR PLUS
* LIFEPAK EXPRESS; and their components and accessories, including the LIFENET Systems

Under terms of the decree, Physio-Control and Medtronic agreed to take necessary measures to ensure that AEDs manufactured and designed at the Redmond facility comply with cGMP requirements and FDA regulations for reporting device corrections and removals.

Manufacturing and distribution may resume once the FDA is satisfied that the Redmond facility is in compliance with the law. To ensure compliance, an outside expert will conduct yearly audit inspections for five years, submitting findings to the agency.

The decree also provides that the companies are subject to liquidated damages in the amount of $15,000 per day if they fail to comply with any of the provisions of the decree, and an additional sum of $15,000 for each violation of the consent decree, the Federal Food, Drug, and Cosmetic Act, or FDA regulations.

The decree, filed on April 25, 2008, in the U.S. District Court for the Western District of Washington, is subject to court approval.


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