Despite minimal proof that they work much better than other minimally-invasive surgical treatments, more hospitals are purchasing surgical robots. As of last year, Intuitive had actually installed 3,720 of its da Vinci surgical robotics in the U.S., according to a filing with the Securities and Exchange Commission. Both lawsuits focused on limitations in preserving and re-using surgical instruments that come with the robotics.
Several hospitals have submitted class action antitrust lawsuits against Intuitive Surgical, one of the biggest surgical robotic makers, declaring that it used its market power to require them to sign limiting repair agreements and purchase replacement parts at inflated prices.
In spite of limited proof that they work much better than other minimally-invasive surgical treatments, more hospitals are purchasing surgical robotics. As of last year, Intuitive had set up 3,720 of its da Vinci surgical robots in the U.S., according to a filing with the Securities and Exchange Commission. These gadgets are pricey, costing up to $2.5 million each, and typically included countless dollars in extra annual costs.
In a grievance filed previously this month, 13-hospital system Franciscan Health stated it needed to sign a five-year service contract, which could be voided if it looked for out third-party repair services for its da Vinci surgical robots. These services expense in between $80,000 and $190,000 per year.
According to the lawsuit, one consumer that had attempted to utilize a third-party robotic repair work service discovered its gadget stopped operating during an operation, requiring the cosmetic surgeons to finish the surgical treatment manually.
Franciscan Health declared that some healthcare facilities who attempt to use third-party services get cease-and-desist letters from Intuitive threatening to decline future upkeep, and in some cases, even threatening to disable the robot.
In a separate lawsuit filed this month, New York-based Kaleida Health said independent robotic repair work companies likewise received cease-and-desist letters requiring that they not contact its consumers to offer repair work services.
Both claims focused on limitations in maintaining and re-using surgical instruments that feature the robotics. Each one includes a series of attachments that resemble conventional laparoscopic surgical tools, such as a scalpel and scissors, but they also have an ingrained chip to track how numerous times the gadget is utilized. In some cases, the instruments might just be used 10 times prior to the medical facility needed to acquire more gadgets, both lawsuits declared.
These service contracts and devices are a big source of earnings for Intuitive Surgical. It generated $2.46 billion in accessories and instruments alone last year, and another $724 million in services, jointly comprising over half of its total income..
Both class action suits are looking for a judgment that Intuitive Surgical violated antitrust law, and treble damages. Instinctive Surgical did not respond to ask for remark at the time of publication.
The cases are Kaleida Health v. Intuitive Surgical Inc. and Franciscan Alliance Inc. v. Intuitive Surgical Inc. Both were filed in the U.S. District Court for the Northern District of California.
Image from flickr user Roswell Park.