Arthrocare Division Feeling Insurers' Heat

OKLAHOMA CITY -- In 2006, government billing records show, Palm Beach Lakes Surgery Center performed hundreds of spine surgeries that are normally suitable for just a small fraction of the population.

Thanks in part to Arthrocare (ARTC Quote), which supplied the disposable SpineWands used in those surgeries, the surgery center made millions. It caught the attention of insurance companies as well.

Palm Beach Lakes Surgery Center uses Arthrocare SpineWands to perform plasma disc decompression (PDD), a minimally invasive surgery designed to relieve the pain caused by herniated discs. Arthrocare promotes PDD as one of the cheapest and most effective treatments in the spine arena. Although SpineWands lack routine health insurance coverage -- a factor that weighed on their performance for years -- they currently rank as the biggest source of revenue in Arthrocare's booming spine division. ...