Physician-owned companies

STUDY DESIGN. The author relates his experience in the development of a spinal implant development company (K2M) that is significantly advised by physicians. OBJECTIVES. To provide information about the development of a spinal implant company (K2M) advised by a group of professional spinal surgeons. To relate the federal laws (STARK and antikickback) as they pertain to surgeon-influenced companies. To discuss the role of a scientific advisory board. METHODS. A self-developed company was developed together with significant, but minority physician financial input and majority scientific advice. RESULTS. A privately owned spinal implant development corporation (K2M) was developed 3 years ago. Physician financial participation was less than 20% (Stark laws state no more than 40%). Users of product are greater than 60% noninvestor physicians. The development of a large scientific advisory board has been very influential in product development. CONCLUSIONS. A privately owned spinal implant company (K2M) has been developed strictly within Federal laws. Its board of scientific advisors that receives recompense commissurate only with effort significantly impacts the company policy.