Nor will these new arrangements protect manufacturers from potential liability, according to Rick Boothman, executive director of clinical safety and chief risk officer for the University of Michigan Health System.

For both manufacturers and hospitals the hope is that this new initiative will lead to more evidence-based outcome tracking – and for device makers, to boost acceptance and sales of their products. "We are really doing this to promote a technology and a benefit that we know exists, to remove any doubt and to speed up market acceptance," said Omar Ishrak, CEO at Medtronic, in a Reuters interview.


Medtronic is guaranteeing a drop in hospital infection rates for procedures using its Tyrx, a mesh sleeve that surrounds a cardiac implant with antibiotics. And if rates don't go down, the company will cover the price of related infection treatments.

J&J's Biosense Webster unit takes a slightly different approach with its Thermocool catheter ablation treatment for abnormal heart rhythm. If a repeat procedure is needed on the same patient within 12 months, the hospital gets a price break in its devices. And J&J’s Ethicon surgical products business plans a risk arrangement for its Biopatch antimicrobial dressing, according to the report.

If revision surgery is needed in the first year for St. Jude Medical's Quadra heart rhythm device due to problems with the company’s Quartet lead wire, there will be a 45 percent rebate.

And HealthTrust Purchasing Group is close to a deal to share risk on a number of procedures, including spinal fusion. The company is owned by Parallon, part of No. 1 U.S. hospital operator HCA Holdings Inc.

The full Reuters article can be read here.

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