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Compounding Disaster - July 2016 - Subscribe to Outpatient Surgery Magazine

Outpatient Surgery Magazine, providing current information on Surgical Services, Surgical Facility Administration, Outpatient Surgery News and Trends, OR Excellence and more.

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On Oct. 15, FDA issued an advisory that a patient might have acquired fungal meningitis from a different NECC steroid injection, triamcinolone acetonide. In addition, the FDA reported a transplant patient with an Aspergillus fumigatus infection who'd received a NECC cardioplegic solution during surgery. At a House Committee on Energy and Commerce hearing titled, "The Fungal Meningitis Outbreak: Could It Have Been Prevented?" Mr. Cadden was called to testify. He took the stand but repeatedly took the Fifth. Never once did he apologize or express sorrow. Belly up NECC filed for Chapter 11 bankruptcy on Dec. 21, 2012. More than 3,000 people had filed claims and about 686 had filed suits against NECC on the basis that they or their family members were harmed, had died or were otherwise affected by NECC's products. At the time of filing, NECC, which was no longer operating, had only $1.3 million in the books, not even enough to pay the bankruptcy lawyers. In the previous year, as investigations swirled around it, NECC had trans- ferred $21 million to the Conigliaros and Caddens. The Caddens got $6 million, Lisa Conigliaro got almost $9 million, Greg got $1.5 million and Medical Sales Management, run by Doug, got $4.1 million. They would give that much back, and then some. Chapter 11 Trustee Paul D. Moore negotiated with NECC shareholders and insur- ers as well as medical providers and their insurers. In the end he sub- mitted a widely praised plan making available $211 million to NECC's creditors. NECC shareholders contributed $47.5 million to the fund. J U L Y 2 0 1 6 • O U T PA T I E N TS U R G E R Y. N E T • 1 6 3 When customers refused to provide prescriptions for their orders, NECC submitted phony names: Big Baby Jesus, Roy Rogers, L.L. Bean and Filet-O-Fish.

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