Arthrocare Device Use Draws More Scrutiny

An escalating FBI probe could pose new threats to embattled Arthrocare.

This month, the National Insurance Crime Bureau issued an alert to Florida insurers about a mounting FBI investigation into minor — but lucrative — surgeries that often require one of Arthrocare’s most popular devices. Moreover, sources say, a federal grand jury is preparing to examine the matter as well.  Sales of Arthrocare’s popular Perc-D SpineWands, which have fueled the company’s explosive growth in recent years, could suffer as a result.

According to the NICB alert, FBI officials in West Palm Beach, Fla. are seeking information about “percutaneous discectomy” surgeries performed on patients covered by pending legal settlements rather than traditional health insurance. Investigators are focusing on discectomies billed under a special code — known as CPT 63056 — that can bring especially generous payments.

“Some federal criminal investigations like this can take years,” says Gary Roberts, a Florida attorney familiar with this particular case. “However, from every indication I’ve seen, this one appears to be fast-tracked.”

Confirmation of the FBI probe comes months after first began exploring a possible insurance scam involving Arthrocare’s popular SpineWands.

Source: The

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