October 02,2008

Senator Grassley’s letter to the Department of Justice Regarding Financial Relationships Between Medical Device Makers and Physicians

September 29, 2008

Via Electronic Transmission
The Honorable Michael B. Mukasey
Attorney General
United States Department of Justice
950 Pennsylvania Avenue, NW
Washington, DC 20530
Re: U.S. ex rel. [UNDER SEAL] v. Medtronic, Inc., et al., C.A. 02-2709 (W.D. Tenn.)U.S. ex rel. Poteet v. Medtronic, Inc., et al., C.A. 03-2979 (W.D. Tenn.)

Dear Attorney General Mukasey:

The Senate Finance Committee (Committee) has jurisdiction over the Medicareand Medicaid programs in the United States Senate. The Committee is presentlyinvestigating financial relationships between medical device manufacturers andphysicians. According to press accounts and court filings, the Department of Justicereached a settlement in the two cases named above and successfully moved to have themdismissed from federal court. These cases involve allegations of kickbacks between thedefendant and several leading physicians as well as possible fraud, waste, and abuse inthe Medicare system.

As I carry out my investigation, I would appreciate a status update on the abovecases. Please arrange to have the counsel(s) responsible for these matters brief my staffon it as soon as possible.

Thank you in advance for your assistance and please have your staff makearrangements with my staff by October 10, 2008. Please do not hesitate to contact me ifyou have any concerns. I look forward to your cooperation and assistance on thisimportant matter. Should you have any questions regarding this letter, please contactChristopher Armstrong or Paul Thacker of my staff at (202) 224-4515.


Charles E. Grassley
Ranking Member

cc: Peter D. Keisler, Assistant Attorney General