Republican Arizona Rep. Paul Gosar sent a letter Wednesday to the CEO of TransMedics, a medical device company, calling on them to explain why lifesaving technology was “being held hostage.”
The Daily Caller first obtained a copy of the letter, in which Gosar mentions TransMedics Organ Care System (OCS), which was technology that came out in trial processes in 2013 through 2021. Gosar says that at that time, transplant centers could purchase the OCS for $30,000 and have their staff trained by TransMedics to use it, but that it all changed after getting FDA approval.
“After FDA approval was achieved in 2021, TransMedics began to change the entirety of its business model,” Gosar stated. “Almost immediately, the cost of the one-time, disposable cassette utilized to encompass the organ during transportation and perfusion increased from the initial $7,000 to greater than $60,000 per disposable cassette.”
“Instead, TransMedics created its own team of individuals as the sole source for any initiation of the OCS device and labeled this the National OCS Program, or NOP. Transplant centers could no longer purchase the medical device, rather lease the device and request the necessary TransMedics personnel for any OCS heart, liver, or lung organ recovery. Costs for TransMedics surgical recovery are approximately $20,000 per request,” Gosar continued.
Here Is What Gosar Asks In The Letter:
- Although it is well understood that the use of private aircraft is necessary to ensure that human organs reach their recipient in time, my staff has received allegations that TransMedics uses private aircraft for convenient transportation of their staff and equipment, where no such urgency exists. Has TransMedics ever use private aircraft to transport staff and equipment without the purpose of transporting organs?
- Please submit flight records for the past six months, specifying who was on each flight and their role for the company.
- It has come to my attention that many transplant centers are uncomfortable asking Medicare for reimbursement due to the increased costs associated with use of the TransMedics NOP, and the significantly more expensive aircraft deployed by TransMedics Aviation. At a recent investor conference, you noted these transplant centers were misguided in their attempts to save money for their hospitals and taxpayers, stating, in part: “we don’t have a reimbursement issue, it’s an educational responsibility for our commercial team to bring transplant administrators up to the level of knowledge they need to understand that all of the NOP charges are fully reimbursed, and just walk them through the process.” Please provide all materials TransMedics provides transplant centers to “walk them through the process,” including how to maximize reimbursements through Medicare.
- We understand that TransMedics has made significant investments in new model aircraft and has placed pressure on their hospital customers to utilize their aircraft, despite protests from hospitals that TransMedics Aviation carries significantly higher costs than their current providers. Some transplant centers have reported being pressured to use TransMedics’ captive aircraft, at nearly double the cost, or risk losing access to TransMedics’ life saving device. Has TransMedics ever denied a transplant center access to your life saving devices unless they use TransMedics’ aircraft and pilots?
READ THE LETTER HERE:
(DAILY CALLER OBTAINED) — … by Henry Rodgers
“What began as a promising medical equipment innovation and an opportunity to increase transplantation nationwide, is now being held hostage by a public company that has lost its true north. TransMedics is more driven by revenue generation, and continuous forced bundling of services than it is by the opportunity to decrease the patient transplant waitlist,” Gosar wrote in the letter. (RELATED: EXCLUSIVE: Rep. Gosar Demands Biden Admin Explain WMD-Related Funding To Nonprofit Tied To Wuhan Lab)
“TransMedics’ anticompetitive behavior, misuse of taxpayer dollars and holding lifesaving medical care hostage is certainly inviting Congressional oversight,” a House GOP leadership aide told the Caller. (RELATED: EXCLUSIVE: House Republicans Introduce Legislation To Prevent Ukraine From Stealing US Taxpayer Dollars)
Gosar called for responses to his questions no later than February 26th, 2024.