Yes, fellow bloggers, TSB is alive and well. It's been an entertaining yet pathetic week and a half on this blog in lieu of the drums that some of our readers insist on beating. TSB intends to censor as much as possible. For the three plus years that we have been reporting about the medical device industry, we have never been as fixated on crucifying the industry for its short-comings as have a few of our readers. In spite of those that believe that TSB only writes about the negative, we believe that there are many people in this industry that deliver exceptional medicine and care to their patients. That there are many sales people that get up everyday and do the best they can. That there are a few executives that really would like to do the right thing. As usual its, the 20% that ruin it for the rest of us. We do not need to be reminded that there are many things wrong, but there are many things that are done with the best of intent. It's called checks and balances. Yet, the last few weeks have been educational to say the least. Today's breaking news continues to validate the many things that need to be eradicated from within the healthcare industry. The delivery of healthcare has become such a big business with so many nefarious players, is it a wonder that today's story about a former CEO of "The" Hospital for Special Surgery, the mecca for Orthopedics, cast dispersions and a black cloud over the creme de la creme of hospitals?
On Wednesday, September 26th, 2012, John Reynolds a former CEO of New York Hospital for Special Surgery was arrested at his home in Cataumet, Massachusetts and charged in federal court with racketeering and making false statements. These charges are punishable by 25 years, which would mean that if Mssr. Reynolds is convicted of all of the charges he will have to serve at least 20 years in the big house. Mssr. Reynolds served as the Chief Financial Officer from 1986 through 1997, and was CEO from 1997 through 2006.
Prosecutors allege that Mssr. Reynolds was engaged in a decade long kick back scheme that solicited money from vendors, a hospital employee, and a UK based healthcare organization. Obviously Mssr. Reynolds attorney was quoted as saying that these allegations are baseless and that Reynolds looks forward to his day in court. But isn't this the typical tactic by all attorneys? Everything is baseless until discovery proves that there may be sufficient evidence for conviction. And then what does it say about how business has been done in the past, the present, and potentially the future at a facility like Special Surgery. Have we stooped so low that some surgeons actually demand a payment from a rep to make a sales pitch on his product? Do we now have to deal with hospital administrators shaking down company reps for an opportunity to sell their products in a free market? TSB can't wait for all those free-marketeers to defend these actions. But let's be honest, if the federalis didn't have evidence that they believed that they could win a conviction, would they even bother with Mssr. Reynolds?
TSB's money is with the feds. Mssr. Reynold's is entitled to his day in court, but if TSB is gambling with my money, my bet is plea deal after all is said and done. What do our readers think?