Full Measure After Hours: Investigating Alleged Kickbacks in VA Medical Device Procurement

Episode: After Hours: Did VA Doctors Take Bribes to Buy and Use Unnecessary Medical Devices on Vets? (From the Archives)
Release Date: August 7, 2025
Host: Sharyl Attkisson

Introduction

In this compelling episode of Full Measure After Hours, host Sharyl Attkisson delves into a disturbing allegation involving the misappropriation of taxpayer funds within the Department of Veterans Affairs (VA). The episode centers around whistleblower Tom Schrader's claims that Medtronic, a leading medical device company, engaged in a kickback scheme to supply unnecessary medical devices to VA hospitals, ultimately leading to redundant and potentially harmful medical procedures on veterans.

Background on the Allegation

Tom Schrader, a former medical sales representative, brings to light his experiences and observations that suggest systemic corruption involving Medtronic and VA hospital staff. According to Schrader, Medtronic bribed VA doctors to purchase excessive amounts of medical devices, which were then used in medically unnecessary procedures on veterans. These actions not only represent a significant financial burden on taxpayer money but also jeopardize the health and well-being of veterans.

Tom Schrader (02:45): "It's a story of a typical scenario, whether it's healthcare or any other industry where there's always opportunity to take advantage of weaknesses and systems or opportunistic scenarios."

Medtronic’s Role and Practices

Medtronic is identified as the world's largest medical device healthcare company, boasting annual revenues between $30 to $35 billion. Schrader outlines the company's role in the medical device supply chain, emphasizing how sales representatives like himself are integral in educating and supplying physicians with the latest medical technologies.

Tom Schrader (03:24): "Medtronic is the largest medical device healthcare company in the world."

Schrader details the specific devices involved in the allegations—primarily those used to treat Peripheral Artery Disease (PAD). He explains the standard procedures and devices, such as angioplasty balloons and drug-coated balloons, highlighting their intended use and potential risks when overprescribed.

Tom Schrader (05:41): "Angioplasty balloons are usually the ones that most can recognize or remember. [...] it's not ideal because you tear the artery wall and embolize some of that plaque downstream, but it's effective at getting the artery open immediately."

Uncovering the Kickback Scheme

The crux of Schrader's allegations began in November 2016 when he noticed an unusually large inventory of Medtronic devices at the Wichita VA Hospital. Initially skeptical, his suspicions were confirmed upon visiting the facility and observing hundreds of drug-coated balloons and atherectomy products on the shelves—far exceeding typical usage rates.

Tom Schrader (09:03): "I drove down the next day and we walked in there and sure enough, I took pictures. I'm like, this is insane."

Further investigation revealed that these excessive inventories were not only being stored unnecessarily but were also being disposed of or redistributed to other facilities illicitly. This inflated purchasing not only strained VA resources but also posed significant health risks to veterans through unwarranted medical procedures.

Tom Schrader (11:21): "There shouldn't be any excess inventory because hospitals can receive products from the sales reps promptly as needed."

Attempting to Address the Issue

Schrader recounts his efforts to rectify the situation internally before taking legal action. He approached various channels within the VA, including the ethics department and the VA hotline, but encountered no meaningful response. Even after escalating the matter to a U.S. Congressman in Kansas, no corrective measures were taken.

Tom Schrader (18:47): "Nobody cares or is doing anything to stop this. There was only one option left, and that was to file a lawsuit."

Facing systemic inertia, Schrader decided to file a lawsuit to halt the abuse of funds and prevent further harm to veterans. Notably, his actions were supported by his own company’s leadership, indicating a recognition of the severity of the issue.

Tom Schrader (20:06): "My worldwide president at the time said, yeah, I can see why you're doing what you're doing. It sounds really bad."

Impact on Veterans and Current Status

The alleged misuse of Medtronic devices had dire consequences for veterans, including unnecessary amputations and repeated medical procedures that could lead to a decline in quality of life and increased mortality rates. Schrader emphasizes the catastrophic nature of such medical overreach, underscoring the critical need for accountability.

Tom Schrader (26:19): "Catastrophic. [...] I've sent a ticket for you for probably the rest of your life to be getting treatments... until eventually a doctor tells you, I'm sorry, there's nothing I can do anymore."

As of the episode's release, the legal proceedings have concluded depositions and discovery phases. The final hurdle involves obtaining and analyzing medical records to quantify the harm inflicted upon veterans. However, Schrader highlights the ongoing challenges, including the VA's delayed access to essential records.

Tom Schrader (24:45): "We're currently... getting the medical records from the VA, which they are in the process of turning over to us."

Lessons and Broader Implications

Schrader reflects on the broader implications of his experience, advocating for systemic reforms to prevent such abuses. He underscores the importance of vigilance, transparency, and accountability within both medical institutions and the corporate sector. Furthermore, he urges professionals within the industry to take responsibility and act against unethical practices to safeguard the health and trust of patients.

Tom Schrader (27:49): "The system works. The vast majority of physicians... are phenomenal people. [...] Everybody should be learning... take control of your own health. If something's not right in your scenario, you should be informed about it."

He also criticizes Medtronic for failing to hold accountable those involved in the scheme, noting the company's practice of reassigning implicated sales representatives to other VA facilities, thereby perpetuating the cycle of abuse.

Tom Schrader (29:27): "Not a single damn person has yet been held responsible. In fact, [...] they've simply moved those reps to manage other VA hospitals..."

Conclusion

This episode of Full Measure After Hours sheds light on a deeply troubling case of alleged corruption within the VA's medical device procurement processes. Through Tom Schrader's courageous whistleblowing, the podcast underscores the critical need for oversight and integrity in healthcare, especially when it pertains to the care of veterans. As the legal battle continues, the hope is that this investigation will lead to meaningful reforms, ensuring that taxpayer funds are used appropriately and that veterans receive the ethical and necessary medical care they deserve.

Notable Quotes

• Tom Schrader (02:45): "It's a story of a typical scenario, whether it's healthcare or any other industry where there's always opportunity to take advantage of weaknesses and systems or opportunistic scenarios."

• Tom Schrader (09:03): "I drove down the next day and we walked in there and sure enough, I took pictures. I'm like, this is insane."

• Tom Schrader (18:47): "Nobody cares or is doing anything to stop this. There was only one option left, and that was to file a lawsuit."

• Tom Schrader (27:49): "The system works. The vast majority of physicians... are phenomenal people."

Final Thoughts

Sharyl Attkisson's in-depth exploration of this case not only brings to the forefront issues of corporate malfeasance and systemic oversight but also serves as a rallying call for accountability in the healthcare industry. By highlighting the personal and professional risks whistleblowers like Tom Schrader face, the podcast emphasizes the importance of protecting and valuing those who expose wrongdoing in the pursuit of justice and integrity.