Why Physicians Are Investing In Spine Medical Devices ? Debunking Myths vs. Facts

Dr. Kingsley R Chin MBA

Dr. Jason Seale MBA

Aditya Humad

Daniela Hodgkins

Physicians remain the primary users of medical devices but often miss out on the financial opportunities of their own innovations. While over 99.99% of physicians act as customers rather than owners, investing in medical technology offers a path to both financial and professional influence. 

Debunking Common Myths

1. Physician investment always creates a conflict of interest.

   ✅ Reality: Anti-Kickback rules allow ownership when structured properly

2. Physicians profit unfairly from using their own devices.

   ✅ Reality: Investments support innovation, not self-referrals, with compliance safeguards.

3. Physician-owned companies manipulate hospital purchasing. 

   ✅ Reality: The “40-40 Rule” and procurement policies ensure fair practices.

4. Investing in medical device companies is the same as owning a distributor or GPO.

   ✅ Reality: Medical device investments require capital, R&D, and regulatory approval.

Best Practices for Ethical Physician Investment

To ensure compliance and maximize impact, physicians should:

✅ Disclose financial interests when recommending products.

✅ Follow safe harbor investment guidelines to remain legally compliant.

✅ Prioritize innovation over short-term financial gains.

✅Invest in companies with independent business models, avoiding reliance on physician owners and consultants.

Physicians Investing In The Future Of Medical Devices

The opportunity for physicians to move beyond being just customers is clear. By investing in medical device companies, they can influence the industry, improve patient outcomes, and build financial security.