VA Cost of Prosthetics & Shenanigans of the Association of Limb Manufactures of America in 1945/ Today's Stark Laws
tony barr
Description
Collection
Title:
VA Cost of Prosthetics & Shenanigans of the Association of Limb Manufactures of America in 1945/ Today's Stark Laws
Creator:
tony barr
Date:
2/2/2005
Text:
Times Business Report
The Price They Paid !!!
Nov. 26, 1945
The Veterans Administration has long known that artificial legs which
Government orthopedic shops made for $62 were being sold by private firms
for as much as $450. When the Administration tried to get lower prices
through competitive bids, it often got identical bids from all members of
the Association of Limb Manufacturers of America, which makes over 80% of
the nation's artificial limbs and 90% of the parts.*
Last week the Department of Justice did something about this. It had the
A.L.M.A., 45 member firms, and 34 individuals indicted under the antitrust
laws. The charge: conspiring to fix high prices for artificial limbs,
prevent competition.
Most servicemen amputees (about 17,000 to date) get their artificial limbs
from A.L.M.A. members. The Army fits them only with temporary appliances
before discharge. Then the veteran gets a permanent limb, paid for by the
Veterans Administration, from a private shop.
The Administration once tried to make all of its own limbs (the few shops it
has now are only yardsticks). But the A.L.M.A. talked this project down. It
argued that Government manufacture of limbs would destroy free enterprise
and inventive genius.
Today's Stark Laws
The purpose of Stark legislation was to regulate financial self-referral
incentives. The concern; unregulated these incentives could corrupt medical
judgment, incite unnecessary medical procedures, subsidize marginal
providers and discourage competition.
Sonya Richardson The impact of such a practice allows an increase in
referrals by an orthopedic practice and allows the field to expand.
I think that is the point of Stark,. Increase and expansionsuch as you
describe only benefits one party, the self-referring physician.
You can slice it, dice it, and try to spin it any way you want; but
physician self-referral does not promote the mutually beneficial effects you
would erroneously lead everyone to believe. Self-referral constitutes
enormous temptation and generates multiple conflicts of interest.
Kickbacks and self-referral have consistently proven to have detrimental
cumulative results. They stifle legitimate competition, bankrupt finite
resources, inhibit technological progress, and are inevitably a source of
flagrant waste, abuse, and fraud.
For further enlightenment, edification, and reading pleasure you can click
on the following link:
< <URL Redacted>>
<URL Redacted>
It was Herbert Hoover who once advised us;
Competition is not only the basis of protection to the consumer, but is the
incentive to progress.
The Price They Paid !!!
Nov. 26, 1945
The Veterans Administration has long known that artificial legs which
Government orthopedic shops made for $62 were being sold by private firms
for as much as $450. When the Administration tried to get lower prices
through competitive bids, it often got identical bids from all members of
the Association of Limb Manufacturers of America, which makes over 80% of
the nation's artificial limbs and 90% of the parts.*
Last week the Department of Justice did something about this. It had the
A.L.M.A., 45 member firms, and 34 individuals indicted under the antitrust
laws. The charge: conspiring to fix high prices for artificial limbs,
prevent competition.
Most servicemen amputees (about 17,000 to date) get their artificial limbs
from A.L.M.A. members. The Army fits them only with temporary appliances
before discharge. Then the veteran gets a permanent limb, paid for by the
Veterans Administration, from a private shop.
The Administration once tried to make all of its own limbs (the few shops it
has now are only yardsticks). But the A.L.M.A. talked this project down. It
argued that Government manufacture of limbs would destroy free enterprise
and inventive genius.
Today's Stark Laws
The purpose of Stark legislation was to regulate financial self-referral
incentives. The concern; unregulated these incentives could corrupt medical
judgment, incite unnecessary medical procedures, subsidize marginal
providers and discourage competition.
Sonya Richardson The impact of such a practice allows an increase in
referrals by an orthopedic practice and allows the field to expand.
I think that is the point of Stark,. Increase and expansionsuch as you
describe only benefits one party, the self-referring physician.
You can slice it, dice it, and try to spin it any way you want; but
physician self-referral does not promote the mutually beneficial effects you
would erroneously lead everyone to believe. Self-referral constitutes
enormous temptation and generates multiple conflicts of interest.
Kickbacks and self-referral have consistently proven to have detrimental
cumulative results. They stifle legitimate competition, bankrupt finite
resources, inhibit technological progress, and are inevitably a source of
flagrant waste, abuse, and fraud.
For further enlightenment, edification, and reading pleasure you can click
on the following link:
< <URL Redacted>>
<URL Redacted>
It was Herbert Hoover who once advised us;
Competition is not only the basis of protection to the consumer, but is the
incentive to progress.
Citation
tony barr, “VA Cost of Prosthetics & Shenanigans of the Association of Limb Manufactures of America in 1945/ Today's Stark Laws,” Digital Resource Foundation for Orthotics and Prosthetics, accessed November 25, 2024, https://library.drfop.org/items/show/224433.
