St Jude Medical, Inc. Acquisition of AGA Medical Holdings, Inc. AGA Medical Holdings, Inc. AGA Medical Holdings, Inc. develops and manufactures cardiovascular medical devices to treat congenital heart and peripheral vascular diseases. AGA Medical is a global innovator and manufacture of comprehensive medical devices that treat the structural heart defects and vascular abnormalities through minimal invasive transcatheter treatments. The products manufacture by AGA Medical is sold under the brand name AMPLATZER in over 112 countries through a network of distributors and direct sales. The company started by Dr. Kurt Amplatz, an Austrian radiologist and medical device inventor with the invention of the AMPLATZER Septal Occluder. The medical device …show more content…
AGA Medical received CE marking in 1999 for the Septal Occluder, which received wide adoption in the Europe, and generating $25 million in sales. In 2002, the FDA approved the Septal Occluder allowing sales to grow to over $62 million. Conflict within the organization affected the business and organization structure of the company. Co-investors and partners, Franck Gougeon, Michael Afremov, and Curtis Amplatz became in disagreement with each other over ethnic and personal differences prompting litigation for the firing of Afremov. In 2003, a judge ordered the partners to come to unanimous decisions for conducting business at AGA Medical but Gougeon and Amplatz violated the order prompting a court appointed counsel to mediate meetings for the partners. Meetings for the three partners were conducted in hotel meeting rooms with multiple attorneys present to represent each party’s interest. The litigation ensued for months with discussion of who would be eligible to buy each other shares of the company. The parties came to an agreement for Gougeon and Helms to buy out Afremov for approximately $300 million, with funds being provided by a private equity firm Welsh Carson Anderson & Stowe. The initial legislation between ownership of AGA Medical was the start of legal issues the company when sustained before being acquired by St Jude …show more content…
siting patent infringement for US 6,306,141; US 5,067,957; and US 5,190,546 (Coe, 2009). Jervis patents, so-called by Medtronic, uses self-expanding medical deice to restrain metal alloy to expand into an original shape that is used to treat damaged or diseases heart valves with a less invasive transcatheter heart valve procedure. The Occluder and vascular plug product line by AGA Medical infringed the Jervis patent, which was decided by a jury in the Federal district court in San Francisco. The jury awarded Medtronic $57 million in past damages and 11 percent royalty for future US sales of the AGA Medical device that infringe the product through 2018 (Medtronic, Inc., 2009). In March of 2010, AGA Medical had agreed to pay Medtronic, Inc. $35 million to resolve the patent infringement which is less than the jury awarded and will occur over four years (Coe, 2010). The United States Department of Justice, DOJ, announced charges against AGA Medical for foreign corruption and bribery of Government officials in People’s Republic of China. AGA Medical authorized a Chinese Distributor to negotiate the sale price, hiring and firing of employees, and approve sales practices in the foreign country which primary customers were hospital owned and operated by the Chinese government. The evidence of a kickback was shown to reflect up to 25% of sales was being promised and paid to the
Medtronic (Minneapolis) and Edwards Lifesciences (Irvine, California) were not strangers in patent lawsuits. Edwards is specializing in the production of artificial heart valves and new hemodynamic monitoring technology, whereas Medtronic is specializing in the production of medical devices. In the past, the two companies have problems in patent infringement lawsuits over annuloplasty procedures and endovascular graft (1,2). However, currently another latest patent infringement lawsuit has been occurred and reported between Medtronic and Edwards Lifesciences. Edwards claimed that it has prior intellectual property rights on the new transcatheter aortic valve technology.
First, let us analyze General Practice Affiliates’ current financial position. The income and expenses report shows a net revenue of $230,250. The net revenue is obtained after expenses, including taxes, of the company have been subtracted from revenue (Paterson, 2014, p. 124). The balance sheet shows a $306,180 in retained earnings. Retained earnings represent stakeholders’ equity (Paterson, 2014, p. 128). Retained earnings are usually invested back in the form of inventory or debt payments (Albrecht, Stice, Stice , & Swain, 2008). General Practice Affiliates’ cash flow analysis shows that the practice invests in new equipment. However, General Practice Affiliates mainly used cash during 2012. The main source of cash from operations came from depreciation expense, which is not a reliable source of funding (Paterson, 2014, p. 130). Accounts receivable increased by $50,000, while accounts payable only increased by $10,000. In addition, cash flow analysis shows a balance sheet data that is affected by future transactions (Paterson, 2014, p. 128). General Practice Affiliates choose to stretch the time to pay suppliers instead of paying its bills. ...
Sinclair hospital is a part of six hospital network which have other medical offices and as well as clinics. The hospital is an acute medical facility with 305 beds, per year it attends to 6300 inpatient, 17000 emergency patients, 8500 outpatient and 13600 clinics visit. Inpatient visit is where patients stay and sleeps in the hospital as they receive treatment. Other terms used in the hospital includes inventory visit this occurs when a patient comes to the hospital and receives an outpatient surgery e.g. appendectomy and goes home after a short recovery period.25000 case of diagnostic
The cost of Medical equipment plays a significant role in the delivery of health care. The clinical engineering at Victoria Hospital is an important branch of the hospital team management that are working to strategies ways to improve quality of service and lower cost repairs of equipments. The team members from Biomedical and maintenance engineering’s roles are to ensure utilization of quality equipments such as endoscope and minimize length of repair time. All these issues are a major influence in the hospital’s project cost. For example, Victory hospital, which is located in Canada, is in the process of evaluating different options to decrease cost of its endoscope repair. This equipment is use in the endoscopy department for gastroenterological and surgical procedures. In 1993, 2,500 cases where approximately performed and extensive maintenance of the equipment where needed before and after each of those cases. Despite the appropriate care of the scope, repair requirement where still needed. The total cost of repair that year was $60,000 and the repair services where done by an original equipment manufacturers in Ontario.
It is vital that the operating budget ties in with long-term strategies by planning, setting objects with goals, and forecasting the future. According to Mr. Wright, Robertwood Johnson University Hospital adopted the GE Model of “operation excellence” with long-term strategies with their operating budget. With the ” operations excellence” strategy, the organization has over the years transformed the operating budget by accurately tracking and constantly improving their revenue cycle yearly by setting payment practices to generate revenue to achieve specific financial objectives of greater demand with the maximum revenue margins along with eliminating waste and streamlining the budget by cutting expenses and prioritizing programs
Robertson Johnson University Hospital (RWJUH), which is the flagship of Robert Wood Johnson Health System, is a large non-profit hospital with 965-beds located in New Brunswick and Somerville in Central New Jersey (Robertwood Johnson University Hospital, n.d). It has been ranked among the best hospital in the nation, as well as, with several specialties, and the best place to work by other publications (Robertwood Johnson University Hospital, n.d). Their mission of improving health and well-being to its patients stands out in the communities it serves (Robertwood Johnson University Hospital, n.d).
U.S. Securities and Exchange Commission. SEC Charges Johnson & Johnson With Foreign Bribery. 2011. Web. 7 February 2014. .
The founder of St. Jude Children’s Research Hospital was once quoted saying “No child should die in the dawn of life” and it has been the mission of St. Jude to make their founder’s dream a reality through a series of charitable donations, advertisements, celebrity endorsements, and campaigns.
The economic crisis has impacted the industry in so many ways, from health-care-reform legislation to many of the ‘blockbuster’ drugs losing their patents.... ... middle of paper ... ... Even though the court held the complaints to be void, the case came under public scrutiny at that time.
St. Jude Children’s Research Hospital is not like any ordinary hospital. St. Jude is a non-profit organization pursuing the intention to cure and advert pediatric catastrophic diseases through treatment and research (St. Jude Children’s Research Hospital). The founder, Danny Thomas, also wanted the hospital to be available for all children seeking treatment, no matter their religion, nationality, color, or their families financial qualification (St. Jude Children’s Research Hospital). The purpose of St. Jude is just a small portion of what makes it one of the top-ranked hospitals, thanks to the persistence of Danny Thomas.
In this case study it is apparent that there are many problems and also somewhat of domino effect between each issue. Ashe County is home to about 26,000 people. Within this county alone the poverty and age percentage rates are higher than the United States’ percentage rates, and the majority of people have Medicare or Medicaid as their insurance. With the economic downturn in the county’s external environment, their visitor rates have dropped significantly. Many business owners have shut their doors and it is estimated that somewhere between 350 and 400 jobs have been lost in the past 2 years. The unemployment rate has also doubled to 14.7 percent.
Recently, in December 2013, GSK announced that it would no longer compensate doctors for prescribing products or speaking at medical conferences. They also removed prescription-related sales targets for GSK’s representatives. They are making strides in the right direction to correct unethical practices.
Hello Mr. Goertzen, I am a grade nine student, and today I will discuss with you about an issue that deserves further attention. It will affect many people in Winnipeg soon. The issue I am talking about is the closure of four out of the five quick care clinics.Confusion is imminent to take place when there are changes made. With the different changes that have been taking place with our health care system, there is bound to be confusion with patients and their families. The best way to close the clinics is by doing it one by one. Like when the St. Mary clinic was closed. This will help patients get used to leaving the quick care clinics and going to other options. The public will be more comfortable using the services provided by our health
What would life be like if there were no more children to play with as a family? St. Jude’s hospital is definitely the way to go if your child has cancer or another serious disease, they always welcome everyone with open arms. The greatest problem that I see facing society today are kids or babies that are sick and disabled. In order to solve this problem I plan on creating more research programs in my future, volunteer for the Make-A-Wish Foundation, and donate to St. Jude’s hospital.
Such pharmaceutical and medical supply companies can used the detailed information regarding doctor specialties and drug prescription patterns, as well as other pertinent information, to push their products. The story published on Crain’s Chicago Business website reported that these companies can use this information combined with special gifts, promotions or dinners to sway the doctors in their business dealings. AMA officials supported and argued for the deal, stating that such information is not private and can actually be found through other sources and databases, making such a deal completely ethical.