Business
Probe of hospital research group expands
■ The Illinois attorney general is the latest to seek information about Healthcare Research and Development Institute.
By Katherine Vogt — Posted Oct. 23, 2006
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The scrutiny of a Florida-based organization that links hospital executives with suppliers and manufacturers has intensified, with another state attorney general opening a probe into the case, including seeking information from one of the nation's most influential hospital leaders.
Illinois Attorney General Lisa Madigan recently issued subpoenas seeking information about the Healthcare Research & Development Institute, a Pensacola, Fla.-based organization that bills itself as a think tank for hospital leaders, suppliers and manufacturers. HRDI is already the focus of an investigation by the attorney general in Connecticut.
A spokeswoman for Madigan's office declined to comment. But Becton Dickinson & Co., a New Jersey-based medical technology company that is a member of HRDI, said in a regulatory filing that it received a subpoena indicating that Madigan was investigating possible violations of Illinois laws about fraud and deceptive business practices.
Gary Mecklenburg, a Becton Dickinson board member and current chair of HRDI's board, also received subpoenas in the case, said Kris Lathan, a spokeswoman for Northwestern Memorial Healthcare in Chicago. That's where Mecklenburg served as president and chief executive until his retirement Sept. 1. Lathan said the subpoenas sought information about his work with HRDI, not about his role at the helm of the hospital.
Mecklenburg was formerly chair of the American Hospital Assn. Rick Wade, an AHA spokesman, said he had heard from some members about the investigation, all of whom have said they were careful to make sure there were no conflicts created by their participation in HRDI.
Connecticut Attorney General Richard Blumenthal has issued more than 100 subpoenas seeking information about individuals and companies affiliated with HRDI. In past congressional testimony, he has made it clear that he considers the organization little more than a vehicle to allow hospital equipment and supply vendors to buy access to the nation's top hospital leaders.
The leaders of HRDI dispute Blumenthal's characterization of their organization, saying instead that they provide an important forum for industry leaders to discuss ideas with the goal of improving health care products and services. The individual members of HRDI includes leaders of some of the nation's top hospital and health systems, and it is underwritten in part by corporate members that includes pharmaceutical companies, investment banks and hospital supply companies.