RPT-INSIGHT-DePuy's handling of hip recall sparks questions (Reuters)
J&J's DePuy unit hires third party to handle recall
Unusual move generates criticism from patients, lawyers
DePuy faces more than 2,000 lawsuits in U.S.
By Toni Clarke
BOSTON, Aug 21 (Reuters) - Johnson & Johnson (JNJ.N), which could face billions of dollars in costs over an artificial hip recall, is taking an unusual approach to managing the crisis -- one that could limit its financial exposure, legal experts say.
J&J's DePuy Orthopaedics Inc unit recalled its metal ASR hip system a year ago after it failed at a higher-than-expected rate, with some patients experiencing pain, swelling, joint dislocation and sometimes systemic damage to the central nervous system, thyroid and heart.
The company now faces more than 2,000 lawsuits in state and federal court in the United States.
In a highly unusual move, DePuy has hired a third party -- Broadspire Services Inc, which manages workers compensation and other medical claims on behalf of insurance companies and employers -- to administer patient claims for out-of-pocket medical costs associated with the recall.
The move has prompted deba...
