"We have taken our obligations under these resolution agreements extremely seriously and have now embraced the opportunity to move beyond their requirements to create a more sustainable model for the growth of our business over the long-term," Mr. Dvorak said.
A Global Framework for Ethical Business Practices
The enhanced compliance model, developed through an extensive review
and planning process by Zimmer, is being implemented globally through an
enterprise-wide initiative. Highlights of the new model include the
-- ESTABLISH NEW ENGAGEMENT AND COMPENSATION STRUCTURES FOR HEALTHCARE
PROFESSIONAL CONSULTANTS. Zimmer is currently reviewing all U.S.
royalty-bearing hip and knee development agreements to ensure
consistency with the fair-market-value principles of its 2005 Corporate
Compliance Program, and is working with a third party to establish the
compensation structure for future agreements with healthcare
professional consultants. The Company said payments to consultants
that have been suspended during the review process will be resolved
appropriately as individual contract reviews are completed.
-- REALIGN MARKETING SYSTEMS, INFRASTRUCTURE AND PRACTICES. Zimmer is
improving and extending internal firewalls to prevent sales,
distribution and other marketing teams from having any involvement with
physician consultant agreements, services or payments. In addition,
Zimmer is banning all Company gifts to healthcare professionals,
prohibiting Zimmer-sponsored healthcare professional presentations at
medical society events, and moving to eliminate the use of quotations,
endorsements, images and
|SOURCE Zimmer Holdings, Inc.|
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