In October 2007, the US Attorney in New Jersey entered into deferred prosecution as well as settlement agreements with six device manufacturers who had paid physicians purportedly to advise them regarding the
development of new devices. Unfortunately, many of these were apparently no show jobs. But in reading the settlements and corporate integrity agreements, while the manufacturers agreed to cease what the government found to be illegitimate relationships with physicians, the government did recognize that paying no more than $500 an hour to physicians to perform real services advising these companies would be permitted. This specifically acknowledges that device manufacturers do have a legitimate need for input from practicing physicians who might use their products. There are many myths about how device manufacturers and physicians may relate to each other. In “
Physician Investment in Start-Up Device Companies: Debunking The Myths”, Alice presents the boundaries of safety and a continuum of arrangements between physicians and device manufacturers.