This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Arthrocare Device Use Draws More Scrutiny

Kugler offered that information when being questioned in a deposition carried out by AllState two years ago. By now, Kugler has faced multiple courtroom challenges from car insurance companies that portray him as one of the most prevalent users of percutaneous discectomies -- with some of the highest prices -- in the country.

Kugler can thank CPT Code 63056 for some of his riches. Using that code, Kugler has picked up tens of thousands of dollars -- more than the listed price for brain surgery -- for minor operations that take no more than a half-hour of his time.

Notably, Arthrocare has promoted the use of that code in its own presentations. In documents obtained by TheStreet.com, Arthrocare's national sales trainer specifically states that she would "skim over 62287" -- the proper code for Perc-D surgeries -- and "focus on 63056" when marketing the company's SpineWands to physicians.

She talks at length about an outfit called DiscoCare as well.

Jonathan Cutler, another physician at Palm Beach Lakes, launched DiscoCare a few years ago. The company supplies Arthrocare's SpineWands to surgery centers and then seeks reimbursement from insurers on their behalf.

Since traditional health insurers consider percutaneous discectomties experimental -- and often refuse to pay for the procedures -- DiscoCare has focused on nontraditional payers instead. By concentrating on personal injury cases, in particular, DiscoCare has enjoyed phenomenal success.

Arthrocare ultimately bought DiscoCare from Cutler for $25 million late last year. While that deal has since backfired, it sparked some grand plans at the time.

3 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
ARTC $48.60 0.08%
ALL $70.95 0.00%
AIG $56.99 0.00%
PGR $26.86 0.00%
AAPL $130.28 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs