09/14/2009 - The stateside controversy concerning Medtronic's payments to its doctor-consultants has erupted Down Under.
Citing confidential documents, the Sydney Morning Herald in Australia reported last week that the Fridley-based medical technology giant devised a "secret marketing strategy" in 2007 to woo doctors' loyalty by paying fellowship grants.
The documents, subsequently obtained by the Star Tribune, indicate that the $1.5 million spent on 18 fellowship grants would likely reap a 200 percent return on investment in the first year.
The objective was to "build a community of practitioners that embrace Medtronic's mission," as well as "secure ... new business revenue streams."
A Medtronic spokeswoman said Thursday that the company's Australasia management became aware of the program in mid-2007 and determined that it was "inappropriate" -- not consistent with its business conduct standards -- and terminated it immediately.
Meanwhile, a brochure from a Medtronic-sponsored scientific meeting concerning treating the aging spine that was held Aug. 28-30 in Hunter Valley, a posh resort in the Australian wine country, featured a speaker of some renown in med-tech circles here: Dr. Timothy Kuklo. Kuklo, a former military doctor, was also a Medtronic consultant until this summer, when the Army accused him of falsifying a study using a Medtronic spine product. As it turns out, Kuklo didn't speak at the meeting.
Also on the agenda: Dr. David Polly, the head of spine surgery at the University of Minnesota's Medical School, whose relationship with Medtronic has been scrutinized by Sen. Charles Grassley, R-Iowa, a ranking member of the Senate Finance Committee who's investigating relationships between medical device firms and doctors.
Polly said in an e-mail last week that he is still an active consultant working with the company.
Granted: $5.1 million
Twelve small Minnesota cities will receive $5.1 million in U.S. Department of Housing and Urban Development economic stimulus grants that will be used to spruce up housing for the poor, rehab commercial buildings and build wastewater systems.
Nashwauk in the Iron Range will get the largest grant: $632,875 to rehabilitate 18 houses and four commercial buildings. The southwest city of Ivanhoe will receive $616,534 to fix up 20 houses and 10 commercial buildings that serve residents of Ivanhoe, Ghent and Minneota.
In central Minnesota, Lowry will get a $600,000 grant to improve wastewater treatment, while Grand Rapids receives $485,000 to renovate a hospital and an apartment building.
Other grants will help the cities of Perley, Bejou, Paynesville, Mora, Remer, Ivanhoe, Seaforth, Mankato and Worthington.
The grants will be administered by the state and funded by HUD. They are aimed at cities that have fewer than 50,000 residents and counties that have populations of less than 200,000.
Short takes
•Today's issue of Advertising Age names Minneapolis' Pocket Hercules as its "Midwest Small Agency of the Year."
Judges for the trade publication said that they were impressed with the agency's "creative product and business results it generated," particularly for Pearl Izumi bike shorts and Lakemaid Beer.
•Minneapolis-based Alvenda last week won the top honors in the fifth annual "Minnesota Cup" contest for entrepreneurs. Alvenda developed an advertising and sales network through the creation of "shoplets" for on-the-go consumers.
The prize included $40,000 in seed money.
• Minneapolis insurance agent Joe Fox was honored over the weekend by the Life and Health Insurance Foundation for Education for his efforts in helping a client cope financially with the loss of her police officer husband when he died of stomach cancer at age 38.
Fox and Melissa Koll also are featured in a special advertising section in the Sept. 14 issue of Newsweek magazine.