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J&J on gainsharing

This article was originally published in The Gray Sheet

Executive Summary

CFO Robert Darretta tells investors during April 19 earnings call that the strategy by which some hospitals curb the cost of devices purchased - allowing doctors to share in the savings - is "something [the firm is] monitoring and, I am sure, we will have conversations about it in the future" (1"The Gray Sheet" April 11, 2005, p. 14). He added: "I am not sure about how [regulators] will feel about endorsing it [or] what length of time gains might be shared and among whom and how. Those things will have a significant impact on people's receptivity to the concept"...

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