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Physician-owned companies
1Department of Orthopaedic/Neurosurgery, Johns Hopkins Hospital, Baltimore, MD, USA. jkostuik@k2m.com
Study Design:
The author relates his experience in the development of a spinal implant development company (K2M) that is significantly advised by physicians.
Objectives:
To provide information about the development of a spinal implant company (K2M) advised by a group of professional spinal surgeons. To relate the federal laws (STARK and anti-kickback) as they pertain to surgeon-influenced companies. To discuss the role of a scientific advisory board.
Methods:
A self-developed company was developed together with significant, but minority physician financial input and majority scientific advice.
Results:
A privately owned spinal implant development corporation (K2M) was developed 3 years ago. Physician financial participation was less than 20% (Stark laws state no more than 40%). Users of product are greater than 60% non-investor physicians. The development of a large scientific advisory board has been very influential in product development.
Conclusions:
A privately owned spinal implant company (K2M) has been developed strictly within Federal laws. Its board of scientific advisors that receives recompense commissurate only with effort significantly impacts the company policy.
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