Friday, January 6, 2012

DePuy Hip Lawsuits May Be Jeopardized By Use of Outside Company to Handle Recall Claims


In August of 2010, DePuy and its parent company, Johnson & Johnson, recalled the DePuy ASR XL Acetabular Cup System, acknowledging that within five years of hip replacement with the system, 13% of patients required revision surgery.

Patients who were fitted with the defective system and require hip replacement revisions as a result are entitled to file a claim and be reimbursed by DePuy for their medical expenses. Traditionally, a company that has to recall a product would handle these recall claims in-house. So, DePuy hip recall claims administration would normally be handled by DePuy itself. But instead, DePuy has chosen to retain an outside company, Broadspire, to handle these recall claims. Concerns have been raised that the tactics being used by Broadspire may jeopardize patients' right to sue the company in future and affect DePuy hip lawsuits.

Broadspire Takes Command of DePuy Hip Recall

Broadspire usually works for employers and insurance companies and handles workers' compensation and medical claims. Why is this problematic? Typically, when a company handles recall claims in-house, it accepts the determination of the patient's own doctor as to whether the patient requires a new procedure as a result of the faulty product, and reimburses the claim. But Broadspire will NOT accept the word of the patient's doctor; instead, it will retain its OWN physicians to decide whether or not the patient needed a hip replacement revision. Since Broadspire is being paid by DePuy, there is a conflict of interest: its doctors may be motivated to deny the claims, despite the word of the patient's doctor, in order to save the company money.

In addition, DePuy is asking patients to sign a release allowing their doctors to share information with the company. Some DePuy hip lawyers are concerned that the purpose of this is to identify possible plaintiffs of a future DePuy Hip lawsuit and to collect information that may be used to fight such a lawsuit.

DePuy argues that using Broadspire to handle DePuy hip recall claims administration will free DePuy to focus on developing new medical devices, instead of handling hip recall claims. Still, the use of an outside company to handle DePuy hip recall claims administration, particularly a company that normally works on behalf of insurance companies, raises concerns that should be taken seriously.