Physician-Owned Distributorships under attack — 5 things to know

Written by Laura Dyrda

The United States filed two complaints under the False Claims Act related to physician-owned distributorships.

The complaints are filed against Aria Sabit, MD, a Michigan-based neurosurgeon; spinal implant company Reliance Medical Systems; two Reliance distributorships; and the companies’ owners Brett Berry, John Hoffman and Adam Pike. The complaints allege the two distributorships — Apex Medical and Kronos Spinal — paid physicians to induce them to use Reliance spinal implants in surgeries they performed.

“Improper payments to physicians can alter a physician’s judgment about patients’ true healthcare needs and drive up healthcare costs for everyone,” said Assistant Attorney General Stuart F. Delery for the Justice Department’s Civil Division. “The Justice Department is committed to enforcing the laws that prohibit such payments.”



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Josh Sandberg

Josh Sandberg is the President and CEO of Ortho Spine Partners and sits on several company and industry related Boards. He also is the Creator and Editor of OrthoSpineNews.

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