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UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OF ADMINISTRATIVE LAW JUDG
In the Matter of Otto Bock HealthCare North America Inc
Respondent
NON-PARTY JONESBORO PampO LABS middot MOTION FOR IN CAMERA TREATMENT
Non~Party Jonesboro PampO Labs (JPO) hereby llloves this Court pursuant to Rule 345
of the FederalTrade Commissions Rules ofPractice 16 CFJt sect 345(b)for incamera
treatment oftwo documents produced by JPO (JPO0105 - JPO0125 andJPO 0126 ~ JPO0130)1
and portions ofthe Iilvestigational HeatingTranscript ofRobYates and the Deposition
Trapscript ofRob Yates 2 bullJPO has been notified by the Federal Tracie Commission (FTC) that
it intends to introduce Exhibit l and both transcripts at trial See Lett~r from FTC dated May 24
2018 (attached as Exhibit5) JPO has beeq notified by Otto BockHealthCare North America
Inc (Otto Bock ) that itintends to introduceExhibit 2 and the Deposition Transcript See
Letter from Otto Bock dated May 29 2018 (attached as Exhibit 6)
The documents were marked at the time ofproduction as Confidential and Subject to
Protective Order Similarly atthe beginning ofboth the irivestigational testimonyand the
deposition testimony it was agreed th~tthe transcripts wotild be treated as confidential The
documents and related testimony contain extremely sensitive and confidential business
infonnation provided pursuant to third-party subpoenas served upon JPO by the FTC and
1 The documents a re attached hereto as Exhibit land Exhibit 2 2 TheJnvestigatiomil Hearing Transcript is attached hereto a s Ex hibit 3 and the Deposition Transcript is attached as Exhibit 4
l
Respondent Otto Bock JPO has advised both the FfC and Otto Bock of its intention to move
for in camera treatment of these materials at trial Neither party opposes this motion
Given the nature oft4e documents and related testimony jpQwouid be sign1ficantly
harmedin its ability to compete in the prosthetic and orthotic industry ifthis information were
publicly available For the reasons set forth below JPO requests that this Court afford its
confidential information permanent in camera treatment In support ofthis motion JPO relies
cm the affidavit ofRob Yates attached as Exhibit 7
l The Igt9cumerits at Issue
JPO seeks in camera treatment of tht following Confidential documents
Exhibit No Pncriptfon Date BegBates EndBates RX--0995 bullDepos1tiori TranscripfofRobertYates (Jonesboro middot
OampP)
03082018 RX-0995-00001
middotmiddotmiddotRX-0995middot 00097
RX--0905 Jonesboro - L Co~e I Fee Sclieduie Price Chart Unkriown 1JPO126 JPOt3D
Exhibit No Description Date BegBates End0Bates PX03036 Joriesboro PampO Document Arkansas BlueCrqss
Bh1eSh1eld Fee Schedule 00000000 JPO105
middotJPOf25 middot
PX05003 tnvestrgatiqnal Hearing Transcript of RobYates i(~onesboroPampO)
11292017 FTC-PROD-005019
I FTC-PROD~ 005051
PX051Cl8
Deposition Tiansciipfof Rob Yates (Jonesboro PampO Laos)
382018 PX05108-001 PX05108~0Q1
Attached hereto as Exhibit 8 is a listing of the eccerpts ofthe transcripts for which in
camera treatment is being sought with a briefdesqiption ofthe nature ofthe testimony
II The Documents and Testimony are Secret and Material and Disclosure Would Result in Se~ious Injury to JPO
The Courtshould grant in camera treatment to documents and testimony when public
disclosure will likely result in a dearly defined seriolls middotinjuryto the person partnership or
corporation requestjrit such treatment 16 CFR sect 345(b) middotserious competitiveinjury may be
demonstrated by showing that the docutllents or testimony are secret aJ1d that they are material to
the business In re General Foods Corp 95 FTC 352355 (1980) In re Dura Lube Corp
1999 FT C Lexis 255 5 (1999) Significantly court~ generally attempt to protect
confidential business information from unnecessary airing HP Hood amp Sons Inc 58 ETC
1184 1188 (1961)
In assessing the nature ofthe injury to JPO should the mfonnation be made public and
the need to protect confidential business the Collrt must keep inmind that JPO is not a party to
this litigation Jtwas initially smicrobpocentnaed ~Y the F TC for inyestigative testimony and then
subpaenaed by both the FT(~ and Otto Bock for a deposition andto produce documents Thus
JPOhasmiddotalready been inconveniencedand forced tomiddotincur substantial expenses simply beoauseit
does business vvith Otto Bock and its competitors fPOs statusas a third-party is relevant to the
Court s ruling on the present motion The FTC has held that athirq~party deserves special
solicitude in its request for in camera treatment of its confi~ential1uswess information In re
Kaiser Aluminum amp ChemCorp 103 FTC 500 (l984)(As a policy matter extensicms of
c~nfidentiatorin camera treatment in appropriate cases involving third party bystanderS
encourages cooperation with future adJudicative discovery requests)
The Courts considerationofthe secrecy arid materiality ofthe documents and testimony
at issue involves the following factors
l) the extent to which the irtfonnation is known outside ofthe business
2) the extellt to which it is known by employees and others involved in the business
3) the exterit ofmeasures takenmiddotto guard the secrecy ofthe infonnation
4) the yal~e ofthe infonnation to the business andits competitors
5) the amount ofeffort or mcgtney expended in developing the information and
6) the easeofdifficulty with which the information could be acquired or duplicated by
others
3
In re Bristot-Myers Co 90 FTC 455 456-57
There can be no doubt but that the documents at issue are secret and material Exhibit 1
is the Jonesborofee schedulew1th Arkansas BlueCross BlueShield (ABCBS) It represents the
agreementbetween JPO and ABCBS for the amounts that ABCBSmiddotwill reimburse JPO for
various compmtents ofprosthetic devices Both JPO andABCBS dearlyconsider this document
to be confid~tialasthe contract between them contai11sa confidentiality clause
L Confidentiality Al3CBS and Provider agree to maintain thecobfidenti~ity ofthe following ltlata artd documents the Allowance or any FeeSchedule of ABCBS any other compensatfon set forthin this Agreement the Provider Manti al utilization review prbgramicroi ~utHnes or guidelines ofA8C8S or any other written policies orprocedures ofABCBS orofPayers furnished to Provider The terms ofthis Agieementare confidemicrotial and the parties agree not to disclose such tertns to third parties except as necessaryto perfortn under this Agreement or as teqmicroired bylaw or regulation middot middot
See Exhibit9(emphasis added)
Itis notdifficult tOunderstandwhyitis in theinterest ofhoth JPO andABCBS to keep
thltir fee schedule confidential Imagine the potential hcentn to Jpq should competitors other
payers and suppliers learn ofits pricing terms with other SUPJliers and payers middot For exatnple if
another payeris peying more than ABCBS and that other payerlearns that it is paying more than
ABCBS~ that payer would use that information to negotiate a lower reimbursement rate for JPO
Similarlyifa competitor ofJPO Jeafris that JPO has better pricing thaniLdoes on certain knees
it could use that infonnation to negotiate the same temis eliminatjngJPOsmiddotcompetitive
advantage
Exhibit 2 is evenmore sensitive than Exhibit l as it includes the reimbursement rate for
multiple payers for a variety ofprosthetic components Thus it includes not onlyinformation
about AB CBS but compares thereimbursement paid by ABCBS to the other payers with which
4
JPO has contracts The agteetnents with these payers contain confidentiality provisions similar
to the one cited above with ABCBS For example the UHC agreement provides
99 Confidentiality Neither party will disclose to a Customer other health care providers or other third parties arty ofthe following infomiation (except as required by an agency of the government)
a) any proprietary business infonnation not available tothe general public obtained bythe party from the other party ot
b) the specific reimbursement amounts provided for under this Agreement except forpurwses ofadministration ofbenefits
See Exhibit10 (emphasis added)
The transcript excerpts listed in Exhibit 8 demonstrate that the testimony listed relates to
this confidential pricing information and rel~ted suojects ThereforeUis as sensitiveas the
infonriation contained on the documents
The foregoing estilblishes that JPQ has satisfied most ofthe factors upon which this Court
is to base its decision regarding in tamera treatment jpo~spricinginfonnation with various
payers is not knownmiddotoutside of the business JPO and the payers have taken measures to guard
the secrecy oftheir contractual arrangements middotThe infonnation about reimbursement rat~
between JPQ and various payers would be extremely valuable to other payers and to JPO s
competitors andmiddotthe information caD11ot easilybe acquired by those other payers orcompetitors
Therefore JPOhas satisfied its burdento obtain confidential treatment ofits information middot
Given thehi~ly sensitive nature offue infonnation contained in the documents and the
testimony and the contractual obligation ltgtfJPO to keep thisinformation confidential JPO
requests that Exhibits 1 2 3~ and 4 be given in camera tteattnent pennanently The confidential
nature ofthe information is likelyto remain sensitive or become more sem~itive with the
p~ssage oftime in re lhra Lube Corp 1999 F1C Lexj~ 255 7~9
5
HI Condusio-1
For the reasons set forth above imdin the Affidavit ofRob A Yates JPO respectfully
requests that this Court grant permanent in camera treatmentto the Confidential Documents in
their entirety
Respectfully submitted
tsLarry S~dondelman Larry S Gondelman Powers Pyles Sutteramp Verville PC 1501 MStreet NW Suite 700 WashingtonDC 20005 2028726712
Jarry gondctmanci-[kbullWersliiw com
Counsel for Non~Party JPO
CERTIFICATE OFSpoundRVICE
1 hereby cert1fy that on June8 2018 the foregoing Motipn and exhibits havebeen served
via electronic mail on
WilliamCooke Federal Trade Commissmn wcooke(Jftcgo
Sean Zabaneh Duane Moms SSZabanel1(a)duartern~wrl~~lt1rt1middot
s(Lagy $ Gondelrnan Larry$ Gondelman
6
STATEMENT REGARDING MEET AND CONFER
The undersigned certifies that counsel forNon~Party Jonesboro PampO Labs notified
counsel for the pames via e mail on May 25 2018 that it would be filing a motion for in camera
treatmentof the documents produced and testimony provided by JPO that the parties intend to
utilize at trial in this matter Both couns~ltorthe Federal trade Commission and Otto Bock
advised that they do not object to JPOs motion
lstarry $ Gondelman middotLarry$ Gondelman igtowersmiddotPyles Sutter amp VervillePC 1501 M StreetNW Suite700 Washington DC 2000s 2028726712 lanmiddotxgpnddmauramiwersJdW~im
Counsel for NonPartyJPO
7
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JPO105
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
Respondent Otto Bock JPO has advised both the FfC and Otto Bock of its intention to move
for in camera treatment of these materials at trial Neither party opposes this motion
Given the nature oft4e documents and related testimony jpQwouid be sign1ficantly
harmedin its ability to compete in the prosthetic and orthotic industry ifthis information were
publicly available For the reasons set forth below JPO requests that this Court afford its
confidential information permanent in camera treatment In support ofthis motion JPO relies
cm the affidavit ofRob Yates attached as Exhibit 7
l The Igt9cumerits at Issue
JPO seeks in camera treatment of tht following Confidential documents
Exhibit No Pncriptfon Date BegBates EndBates RX--0995 bullDepos1tiori TranscripfofRobertYates (Jonesboro middot
OampP)
03082018 RX-0995-00001
middotmiddotmiddotRX-0995middot 00097
RX--0905 Jonesboro - L Co~e I Fee Sclieduie Price Chart Unkriown 1JPO126 JPOt3D
Exhibit No Description Date BegBates End0Bates PX03036 Joriesboro PampO Document Arkansas BlueCrqss
Bh1eSh1eld Fee Schedule 00000000 JPO105
middotJPOf25 middot
PX05003 tnvestrgatiqnal Hearing Transcript of RobYates i(~onesboroPampO)
11292017 FTC-PROD-005019
I FTC-PROD~ 005051
PX051Cl8
Deposition Tiansciipfof Rob Yates (Jonesboro PampO Laos)
382018 PX05108-001 PX05108~0Q1
Attached hereto as Exhibit 8 is a listing of the eccerpts ofthe transcripts for which in
camera treatment is being sought with a briefdesqiption ofthe nature ofthe testimony
II The Documents and Testimony are Secret and Material and Disclosure Would Result in Se~ious Injury to JPO
The Courtshould grant in camera treatment to documents and testimony when public
disclosure will likely result in a dearly defined seriolls middotinjuryto the person partnership or
corporation requestjrit such treatment 16 CFR sect 345(b) middotserious competitiveinjury may be
demonstrated by showing that the docutllents or testimony are secret aJ1d that they are material to
the business In re General Foods Corp 95 FTC 352355 (1980) In re Dura Lube Corp
1999 FT C Lexis 255 5 (1999) Significantly court~ generally attempt to protect
confidential business information from unnecessary airing HP Hood amp Sons Inc 58 ETC
1184 1188 (1961)
In assessing the nature ofthe injury to JPO should the mfonnation be made public and
the need to protect confidential business the Collrt must keep inmind that JPO is not a party to
this litigation Jtwas initially smicrobpocentnaed ~Y the F TC for inyestigative testimony and then
subpaenaed by both the FT(~ and Otto Bock for a deposition andto produce documents Thus
JPOhasmiddotalready been inconveniencedand forced tomiddotincur substantial expenses simply beoauseit
does business vvith Otto Bock and its competitors fPOs statusas a third-party is relevant to the
Court s ruling on the present motion The FTC has held that athirq~party deserves special
solicitude in its request for in camera treatment of its confi~ential1uswess information In re
Kaiser Aluminum amp ChemCorp 103 FTC 500 (l984)(As a policy matter extensicms of
c~nfidentiatorin camera treatment in appropriate cases involving third party bystanderS
encourages cooperation with future adJudicative discovery requests)
The Courts considerationofthe secrecy arid materiality ofthe documents and testimony
at issue involves the following factors
l) the extent to which the irtfonnation is known outside ofthe business
2) the extellt to which it is known by employees and others involved in the business
3) the exterit ofmeasures takenmiddotto guard the secrecy ofthe infonnation
4) the yal~e ofthe infonnation to the business andits competitors
5) the amount ofeffort or mcgtney expended in developing the information and
6) the easeofdifficulty with which the information could be acquired or duplicated by
others
3
In re Bristot-Myers Co 90 FTC 455 456-57
There can be no doubt but that the documents at issue are secret and material Exhibit 1
is the Jonesborofee schedulew1th Arkansas BlueCross BlueShield (ABCBS) It represents the
agreementbetween JPO and ABCBS for the amounts that ABCBSmiddotwill reimburse JPO for
various compmtents ofprosthetic devices Both JPO andABCBS dearlyconsider this document
to be confid~tialasthe contract between them contai11sa confidentiality clause
L Confidentiality Al3CBS and Provider agree to maintain thecobfidenti~ity ofthe following ltlata artd documents the Allowance or any FeeSchedule of ABCBS any other compensatfon set forthin this Agreement the Provider Manti al utilization review prbgramicroi ~utHnes or guidelines ofA8C8S or any other written policies orprocedures ofABCBS orofPayers furnished to Provider The terms ofthis Agieementare confidemicrotial and the parties agree not to disclose such tertns to third parties except as necessaryto perfortn under this Agreement or as teqmicroired bylaw or regulation middot middot
See Exhibit9(emphasis added)
Itis notdifficult tOunderstandwhyitis in theinterest ofhoth JPO andABCBS to keep
thltir fee schedule confidential Imagine the potential hcentn to Jpq should competitors other
payers and suppliers learn ofits pricing terms with other SUPJliers and payers middot For exatnple if
another payeris peying more than ABCBS and that other payerlearns that it is paying more than
ABCBS~ that payer would use that information to negotiate a lower reimbursement rate for JPO
Similarlyifa competitor ofJPO Jeafris that JPO has better pricing thaniLdoes on certain knees
it could use that infonnation to negotiate the same temis eliminatjngJPOsmiddotcompetitive
advantage
Exhibit 2 is evenmore sensitive than Exhibit l as it includes the reimbursement rate for
multiple payers for a variety ofprosthetic components Thus it includes not onlyinformation
about AB CBS but compares thereimbursement paid by ABCBS to the other payers with which
4
JPO has contracts The agteetnents with these payers contain confidentiality provisions similar
to the one cited above with ABCBS For example the UHC agreement provides
99 Confidentiality Neither party will disclose to a Customer other health care providers or other third parties arty ofthe following infomiation (except as required by an agency of the government)
a) any proprietary business infonnation not available tothe general public obtained bythe party from the other party ot
b) the specific reimbursement amounts provided for under this Agreement except forpurwses ofadministration ofbenefits
See Exhibit10 (emphasis added)
The transcript excerpts listed in Exhibit 8 demonstrate that the testimony listed relates to
this confidential pricing information and rel~ted suojects ThereforeUis as sensitiveas the
infonriation contained on the documents
The foregoing estilblishes that JPQ has satisfied most ofthe factors upon which this Court
is to base its decision regarding in tamera treatment jpo~spricinginfonnation with various
payers is not knownmiddotoutside of the business JPO and the payers have taken measures to guard
the secrecy oftheir contractual arrangements middotThe infonnation about reimbursement rat~
between JPQ and various payers would be extremely valuable to other payers and to JPO s
competitors andmiddotthe information caD11ot easilybe acquired by those other payers orcompetitors
Therefore JPOhas satisfied its burdento obtain confidential treatment ofits information middot
Given thehi~ly sensitive nature offue infonnation contained in the documents and the
testimony and the contractual obligation ltgtfJPO to keep thisinformation confidential JPO
requests that Exhibits 1 2 3~ and 4 be given in camera tteattnent pennanently The confidential
nature ofthe information is likelyto remain sensitive or become more sem~itive with the
p~ssage oftime in re lhra Lube Corp 1999 F1C Lexj~ 255 7~9
5
HI Condusio-1
For the reasons set forth above imdin the Affidavit ofRob A Yates JPO respectfully
requests that this Court grant permanent in camera treatmentto the Confidential Documents in
their entirety
Respectfully submitted
tsLarry S~dondelman Larry S Gondelman Powers Pyles Sutteramp Verville PC 1501 MStreet NW Suite 700 WashingtonDC 20005 2028726712
Jarry gondctmanci-[kbullWersliiw com
Counsel for Non~Party JPO
CERTIFICATE OFSpoundRVICE
1 hereby cert1fy that on June8 2018 the foregoing Motipn and exhibits havebeen served
via electronic mail on
WilliamCooke Federal Trade Commissmn wcooke(Jftcgo
Sean Zabaneh Duane Moms SSZabanel1(a)duartern~wrl~~lt1rt1middot
s(Lagy $ Gondelrnan Larry$ Gondelman
6
STATEMENT REGARDING MEET AND CONFER
The undersigned certifies that counsel forNon~Party Jonesboro PampO Labs notified
counsel for the pames via e mail on May 25 2018 that it would be filing a motion for in camera
treatmentof the documents produced and testimony provided by JPO that the parties intend to
utilize at trial in this matter Both couns~ltorthe Federal trade Commission and Otto Bock
advised that they do not object to JPOs motion
lstarry $ Gondelman middotLarry$ Gondelman igtowersmiddotPyles Sutter amp VervillePC 1501 M StreetNW Suite700 Washington DC 2000s 2028726712 lanmiddotxgpnddmauramiwersJdW~im
Counsel for NonPartyJPO
7
REDACTED
CONFl~NJAl-FTC DOCKETli378 SUBJECT TO PROTECTIIE ORDER
JPO105
PX03036bull001
EXHIBIT l IN CAMERA
REDACTED
CONFlbENTIAL- FTC DOCKET 93c78 SLBJECTTOP~OTECTJVEORDE~
JP010S
PX03036--002 EXHIBIT1middot 111 CAMERA
REDACTED
COfIFIDENTIAL- FTC DOCKET 11378 SUBJECT TOPROTECTIVE OROER
JP01D7
PX030367003
EXHBIT 1 IN CAMERA
REDACTED
CONFIOEtITIAL- FTC OO(KET 9378 SUBJECT TO PROTECTIVE ORDER
JPOl0S
PX03036Q04
EXHIBIT 1 IN CAMERA
REDACTED
CONFIOENTIAL- FTC OOCllt1T937 SUBJECt TQ PROTECTIVEORDER
JPClt09
PX0303S005 EXHIBIT l IN CAMERA
REDACTED
C-ONFIDENTIAL- FTC DOClcEi 9378 SUBJECT TO PRDTECTllEbullOROER
JPd111t
PX03038-008
EXHIBIT 1 IN CAMERA
REDACTED
CONFIDENTIAL- FTCQOCKET 9318 middot SUBJECTTO PROTECTIVE ORDER
JP0111
PX03036-007 EXHIBIT 1 IN CAM ERA
REDACTED
CONFIDENTlALmiddot FTC DOC~ET 8378 SUBJECiTO PAOTEClIVE ORDER middot
JP0112
PX03036-00B
EXHll31T 1 IN (AMEIA
REDACTED
CONFIOENTIAL~FtQ DOCKET 9378 SUBJECTTOPROTECTIVEORDER
JP0113
PX03036bull009
EXHIBIT l IN CAMERA
REDACTED
COlfflDENTIALmiddot FTC DQClltEt~78 SUBJEltiTTO PROJeirlVE ORDER
JPOH-4
PX0303S010 EXHIBIT 1 IN CAMERA
REDACTED
CONFIDENTIAL- FTC DOCKET 93711 SUBJECT TO PRbTEClJVE QRDER
JP011i
PX03036middot011 EXHlBIT 1 middot IN CAMERA
REDACTED
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
1999 FT C Lexis 255 5 (1999) Significantly court~ generally attempt to protect
confidential business information from unnecessary airing HP Hood amp Sons Inc 58 ETC
1184 1188 (1961)
In assessing the nature ofthe injury to JPO should the mfonnation be made public and
the need to protect confidential business the Collrt must keep inmind that JPO is not a party to
this litigation Jtwas initially smicrobpocentnaed ~Y the F TC for inyestigative testimony and then
subpaenaed by both the FT(~ and Otto Bock for a deposition andto produce documents Thus
JPOhasmiddotalready been inconveniencedand forced tomiddotincur substantial expenses simply beoauseit
does business vvith Otto Bock and its competitors fPOs statusas a third-party is relevant to the
Court s ruling on the present motion The FTC has held that athirq~party deserves special
solicitude in its request for in camera treatment of its confi~ential1uswess information In re
Kaiser Aluminum amp ChemCorp 103 FTC 500 (l984)(As a policy matter extensicms of
c~nfidentiatorin camera treatment in appropriate cases involving third party bystanderS
encourages cooperation with future adJudicative discovery requests)
The Courts considerationofthe secrecy arid materiality ofthe documents and testimony
at issue involves the following factors
l) the extent to which the irtfonnation is known outside ofthe business
2) the extellt to which it is known by employees and others involved in the business
3) the exterit ofmeasures takenmiddotto guard the secrecy ofthe infonnation
4) the yal~e ofthe infonnation to the business andits competitors
5) the amount ofeffort or mcgtney expended in developing the information and
6) the easeofdifficulty with which the information could be acquired or duplicated by
others
3
In re Bristot-Myers Co 90 FTC 455 456-57
There can be no doubt but that the documents at issue are secret and material Exhibit 1
is the Jonesborofee schedulew1th Arkansas BlueCross BlueShield (ABCBS) It represents the
agreementbetween JPO and ABCBS for the amounts that ABCBSmiddotwill reimburse JPO for
various compmtents ofprosthetic devices Both JPO andABCBS dearlyconsider this document
to be confid~tialasthe contract between them contai11sa confidentiality clause
L Confidentiality Al3CBS and Provider agree to maintain thecobfidenti~ity ofthe following ltlata artd documents the Allowance or any FeeSchedule of ABCBS any other compensatfon set forthin this Agreement the Provider Manti al utilization review prbgramicroi ~utHnes or guidelines ofA8C8S or any other written policies orprocedures ofABCBS orofPayers furnished to Provider The terms ofthis Agieementare confidemicrotial and the parties agree not to disclose such tertns to third parties except as necessaryto perfortn under this Agreement or as teqmicroired bylaw or regulation middot middot
See Exhibit9(emphasis added)
Itis notdifficult tOunderstandwhyitis in theinterest ofhoth JPO andABCBS to keep
thltir fee schedule confidential Imagine the potential hcentn to Jpq should competitors other
payers and suppliers learn ofits pricing terms with other SUPJliers and payers middot For exatnple if
another payeris peying more than ABCBS and that other payerlearns that it is paying more than
ABCBS~ that payer would use that information to negotiate a lower reimbursement rate for JPO
Similarlyifa competitor ofJPO Jeafris that JPO has better pricing thaniLdoes on certain knees
it could use that infonnation to negotiate the same temis eliminatjngJPOsmiddotcompetitive
advantage
Exhibit 2 is evenmore sensitive than Exhibit l as it includes the reimbursement rate for
multiple payers for a variety ofprosthetic components Thus it includes not onlyinformation
about AB CBS but compares thereimbursement paid by ABCBS to the other payers with which
4
JPO has contracts The agteetnents with these payers contain confidentiality provisions similar
to the one cited above with ABCBS For example the UHC agreement provides
99 Confidentiality Neither party will disclose to a Customer other health care providers or other third parties arty ofthe following infomiation (except as required by an agency of the government)
a) any proprietary business infonnation not available tothe general public obtained bythe party from the other party ot
b) the specific reimbursement amounts provided for under this Agreement except forpurwses ofadministration ofbenefits
See Exhibit10 (emphasis added)
The transcript excerpts listed in Exhibit 8 demonstrate that the testimony listed relates to
this confidential pricing information and rel~ted suojects ThereforeUis as sensitiveas the
infonriation contained on the documents
The foregoing estilblishes that JPQ has satisfied most ofthe factors upon which this Court
is to base its decision regarding in tamera treatment jpo~spricinginfonnation with various
payers is not knownmiddotoutside of the business JPO and the payers have taken measures to guard
the secrecy oftheir contractual arrangements middotThe infonnation about reimbursement rat~
between JPQ and various payers would be extremely valuable to other payers and to JPO s
competitors andmiddotthe information caD11ot easilybe acquired by those other payers orcompetitors
Therefore JPOhas satisfied its burdento obtain confidential treatment ofits information middot
Given thehi~ly sensitive nature offue infonnation contained in the documents and the
testimony and the contractual obligation ltgtfJPO to keep thisinformation confidential JPO
requests that Exhibits 1 2 3~ and 4 be given in camera tteattnent pennanently The confidential
nature ofthe information is likelyto remain sensitive or become more sem~itive with the
p~ssage oftime in re lhra Lube Corp 1999 F1C Lexj~ 255 7~9
5
HI Condusio-1
For the reasons set forth above imdin the Affidavit ofRob A Yates JPO respectfully
requests that this Court grant permanent in camera treatmentto the Confidential Documents in
their entirety
Respectfully submitted
tsLarry S~dondelman Larry S Gondelman Powers Pyles Sutteramp Verville PC 1501 MStreet NW Suite 700 WashingtonDC 20005 2028726712
Jarry gondctmanci-[kbullWersliiw com
Counsel for Non~Party JPO
CERTIFICATE OFSpoundRVICE
1 hereby cert1fy that on June8 2018 the foregoing Motipn and exhibits havebeen served
via electronic mail on
WilliamCooke Federal Trade Commissmn wcooke(Jftcgo
Sean Zabaneh Duane Moms SSZabanel1(a)duartern~wrl~~lt1rt1middot
s(Lagy $ Gondelrnan Larry$ Gondelman
6
STATEMENT REGARDING MEET AND CONFER
The undersigned certifies that counsel forNon~Party Jonesboro PampO Labs notified
counsel for the pames via e mail on May 25 2018 that it would be filing a motion for in camera
treatmentof the documents produced and testimony provided by JPO that the parties intend to
utilize at trial in this matter Both couns~ltorthe Federal trade Commission and Otto Bock
advised that they do not object to JPOs motion
lstarry $ Gondelman middotLarry$ Gondelman igtowersmiddotPyles Sutter amp VervillePC 1501 M StreetNW Suite700 Washington DC 2000s 2028726712 lanmiddotxgpnddmauramiwersJdW~im
Counsel for NonPartyJPO
7
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PX03036bull001
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EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
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SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
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AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
In re Bristot-Myers Co 90 FTC 455 456-57
There can be no doubt but that the documents at issue are secret and material Exhibit 1
is the Jonesborofee schedulew1th Arkansas BlueCross BlueShield (ABCBS) It represents the
agreementbetween JPO and ABCBS for the amounts that ABCBSmiddotwill reimburse JPO for
various compmtents ofprosthetic devices Both JPO andABCBS dearlyconsider this document
to be confid~tialasthe contract between them contai11sa confidentiality clause
L Confidentiality Al3CBS and Provider agree to maintain thecobfidenti~ity ofthe following ltlata artd documents the Allowance or any FeeSchedule of ABCBS any other compensatfon set forthin this Agreement the Provider Manti al utilization review prbgramicroi ~utHnes or guidelines ofA8C8S or any other written policies orprocedures ofABCBS orofPayers furnished to Provider The terms ofthis Agieementare confidemicrotial and the parties agree not to disclose such tertns to third parties except as necessaryto perfortn under this Agreement or as teqmicroired bylaw or regulation middot middot
See Exhibit9(emphasis added)
Itis notdifficult tOunderstandwhyitis in theinterest ofhoth JPO andABCBS to keep
thltir fee schedule confidential Imagine the potential hcentn to Jpq should competitors other
payers and suppliers learn ofits pricing terms with other SUPJliers and payers middot For exatnple if
another payeris peying more than ABCBS and that other payerlearns that it is paying more than
ABCBS~ that payer would use that information to negotiate a lower reimbursement rate for JPO
Similarlyifa competitor ofJPO Jeafris that JPO has better pricing thaniLdoes on certain knees
it could use that infonnation to negotiate the same temis eliminatjngJPOsmiddotcompetitive
advantage
Exhibit 2 is evenmore sensitive than Exhibit l as it includes the reimbursement rate for
multiple payers for a variety ofprosthetic components Thus it includes not onlyinformation
about AB CBS but compares thereimbursement paid by ABCBS to the other payers with which
4
JPO has contracts The agteetnents with these payers contain confidentiality provisions similar
to the one cited above with ABCBS For example the UHC agreement provides
99 Confidentiality Neither party will disclose to a Customer other health care providers or other third parties arty ofthe following infomiation (except as required by an agency of the government)
a) any proprietary business infonnation not available tothe general public obtained bythe party from the other party ot
b) the specific reimbursement amounts provided for under this Agreement except forpurwses ofadministration ofbenefits
See Exhibit10 (emphasis added)
The transcript excerpts listed in Exhibit 8 demonstrate that the testimony listed relates to
this confidential pricing information and rel~ted suojects ThereforeUis as sensitiveas the
infonriation contained on the documents
The foregoing estilblishes that JPQ has satisfied most ofthe factors upon which this Court
is to base its decision regarding in tamera treatment jpo~spricinginfonnation with various
payers is not knownmiddotoutside of the business JPO and the payers have taken measures to guard
the secrecy oftheir contractual arrangements middotThe infonnation about reimbursement rat~
between JPQ and various payers would be extremely valuable to other payers and to JPO s
competitors andmiddotthe information caD11ot easilybe acquired by those other payers orcompetitors
Therefore JPOhas satisfied its burdento obtain confidential treatment ofits information middot
Given thehi~ly sensitive nature offue infonnation contained in the documents and the
testimony and the contractual obligation ltgtfJPO to keep thisinformation confidential JPO
requests that Exhibits 1 2 3~ and 4 be given in camera tteattnent pennanently The confidential
nature ofthe information is likelyto remain sensitive or become more sem~itive with the
p~ssage oftime in re lhra Lube Corp 1999 F1C Lexj~ 255 7~9
5
HI Condusio-1
For the reasons set forth above imdin the Affidavit ofRob A Yates JPO respectfully
requests that this Court grant permanent in camera treatmentto the Confidential Documents in
their entirety
Respectfully submitted
tsLarry S~dondelman Larry S Gondelman Powers Pyles Sutteramp Verville PC 1501 MStreet NW Suite 700 WashingtonDC 20005 2028726712
Jarry gondctmanci-[kbullWersliiw com
Counsel for Non~Party JPO
CERTIFICATE OFSpoundRVICE
1 hereby cert1fy that on June8 2018 the foregoing Motipn and exhibits havebeen served
via electronic mail on
WilliamCooke Federal Trade Commissmn wcooke(Jftcgo
Sean Zabaneh Duane Moms SSZabanel1(a)duartern~wrl~~lt1rt1middot
s(Lagy $ Gondelrnan Larry$ Gondelman
6
STATEMENT REGARDING MEET AND CONFER
The undersigned certifies that counsel forNon~Party Jonesboro PampO Labs notified
counsel for the pames via e mail on May 25 2018 that it would be filing a motion for in camera
treatmentof the documents produced and testimony provided by JPO that the parties intend to
utilize at trial in this matter Both couns~ltorthe Federal trade Commission and Otto Bock
advised that they do not object to JPOs motion
lstarry $ Gondelman middotLarry$ Gondelman igtowersmiddotPyles Sutter amp VervillePC 1501 M StreetNW Suite700 Washington DC 2000s 2028726712 lanmiddotxgpnddmauramiwersJdW~im
Counsel for NonPartyJPO
7
REDACTED
CONFl~NJAl-FTC DOCKETli378 SUBJECT TO PROTECTIIE ORDER
JPO105
PX03036bull001
EXHIBIT l IN CAMERA
REDACTED
CONFlbENTIAL- FTC DOCKET 93c78 SLBJECTTOP~OTECTJVEORDE~
JP010S
PX03036--002 EXHIBIT1middot 111 CAMERA
REDACTED
COfIFIDENTIAL- FTC DOCKET 11378 SUBJECT TOPROTECTIVE OROER
JP01D7
PX030367003
EXHBIT 1 IN CAMERA
REDACTED
CONFIOEtITIAL- FTC OO(KET 9378 SUBJECT TO PROTECTIVE ORDER
JPOl0S
PX03036Q04
EXHIBIT 1 IN CAMERA
REDACTED
CONFIOENTIAL- FTC OOCllt1T937 SUBJECt TQ PROTECTIVEORDER
JPClt09
PX0303S005 EXHIBIT l IN CAMERA
REDACTED
C-ONFIDENTIAL- FTC DOClcEi 9378 SUBJECT TO PRDTECTllEbullOROER
JPd111t
PX03038-008
EXHIBIT 1 IN CAMERA
REDACTED
CONFIDENTIAL- FTCQOCKET 9318 middot SUBJECTTO PROTECTIVE ORDER
JP0111
PX03036-007 EXHIBIT 1 IN CAM ERA
REDACTED
CONFIDENTlALmiddot FTC DOC~ET 8378 SUBJECiTO PAOTEClIVE ORDER middot
JP0112
PX03036-00B
EXHll31T 1 IN (AMEIA
REDACTED
CONFIOENTIAL~FtQ DOCKET 9378 SUBJECTTOPROTECTIVEORDER
JP0113
PX03036bull009
EXHIBIT l IN CAMERA
REDACTED
COlfflDENTIALmiddot FTC DQClltEt~78 SUBJEltiTTO PROJeirlVE ORDER
JPOH-4
PX0303S010 EXHIBIT 1 IN CAMERA
REDACTED
CONFIDENTIAL- FTC DOCKET 93711 SUBJECT TO PRbTEClJVE QRDER
JP011i
PX03036middot011 EXHlBIT 1 middot IN CAMERA
REDACTED
(QNFIOENTIAL-FTC OOCiltET ij~70 SUBJECTTOmiddotPROTECTiVEORDER
JP01H
PX03036-012 EXHIBIT 1 IN CAMERA
REDACTED
qONFIDENTIAl- FTCooc~em SUSJec-rro lROTECTIIE ORQER
JP0117
PX03036-013 EXHIBIT 1 IN CAMERA
REDACTED
CONFIDENTIAL FTC DOCK~ 11378 $U8JECT TO PROTECTIVEORDER
JP0118
PXO3036~014 EXHIBIT 1 IN CAMERA
REDACTED
CONFIOENTIAL-FTC OQClltEi gl7~ SUBJECttO PROIECTIVE OR_QER
JP01111
PX03036-015
EXHIBITl INCAMERA
REDACTED
CONFIDENTIAL-FTC OOCJltEJ978 SU8JECT TO PROTECTIVE ORQER
JP0t20
PX03036-016EXHIBIT 1 poundN CAMERA
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~f~~~1ovtR6ii=WR~3 ~
JP0121
PX03036017 EXHBIT 1 IN CAMERA
REDACTED
CQNFIDENTIAL-middotFTC DOCKET 8378 SU84EOT TO PROTECTIVE ORDER
JP012l
PX03036018EXHIBIT IN CAMERA
REDACTED
CONADENTUIL- FTC l)OCl(ET G37B SUB~ECTTO PROTECTIVE 0RbER
JP0123
PX03036()19EXHIBIT 1 IN CAMERA
REDACTED
CONFIDENTIALbullFTC DOCKET 9378 SU~JECT TO PROTECTiVE ORDER
JP0124
FXOS036-020
EXHIBIT 1 IN CAMERI
REDACTED
CONFIOENTIALcFTC O()CKET9378 Sl)BJECT tObullPROTfCTIVEOROER
JP0125
PXOS036-021 EXHIBITl INCAMERA
REDACTED
CONFiDENTIAL0 FTC DOCKET937B SUBJECT TO PROTECTIVE ORDt R
E)(t-ltBIT 2 lN CAMERA JP0126
REDACTED
CONi=IOFNTIAL- FTC DOCKET 9378 SUBJECTTO PROTECTIVE ORDER
EXHIBIT2 IN CAMERA JPOl27
REDACTED
COilalDRNTfAl - FTC DOCKET 9378 SUBJECT TO PROTECTIVE ORDERmiddot
EXHIBIT 2 IN CAMERA JP0 128
REDACTED
CONFIDENlAL FrC DOCKET 9378 SUBJECT TO PROTECTvpound ORDEREXHIBIT2 INCAMERA
JP0129 middot
REDACTED
CONFIDENllAL- FTC DOCKET 9378 SllBJlCr TO PROTECTIVE ORDER
EXHIBIT 2 IN CAMERA JP0130
REDACTED
CONFIOENTIAL - FTC Docket No FTCJNBR~OOOOOB 9378 EXHIBIT 3 IN CAMERA
REDACTED
1 (Pages 1 to 4)
CONFIDENTIAL - FTC Docket No FTC-JNBR-000009 EXHIBIT ~ IN CAMERA9378
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
JPO has contracts The agteetnents with these payers contain confidentiality provisions similar
to the one cited above with ABCBS For example the UHC agreement provides
99 Confidentiality Neither party will disclose to a Customer other health care providers or other third parties arty ofthe following infomiation (except as required by an agency of the government)
a) any proprietary business infonnation not available tothe general public obtained bythe party from the other party ot
b) the specific reimbursement amounts provided for under this Agreement except forpurwses ofadministration ofbenefits
See Exhibit10 (emphasis added)
The transcript excerpts listed in Exhibit 8 demonstrate that the testimony listed relates to
this confidential pricing information and rel~ted suojects ThereforeUis as sensitiveas the
infonriation contained on the documents
The foregoing estilblishes that JPQ has satisfied most ofthe factors upon which this Court
is to base its decision regarding in tamera treatment jpo~spricinginfonnation with various
payers is not knownmiddotoutside of the business JPO and the payers have taken measures to guard
the secrecy oftheir contractual arrangements middotThe infonnation about reimbursement rat~
between JPQ and various payers would be extremely valuable to other payers and to JPO s
competitors andmiddotthe information caD11ot easilybe acquired by those other payers orcompetitors
Therefore JPOhas satisfied its burdento obtain confidential treatment ofits information middot
Given thehi~ly sensitive nature offue infonnation contained in the documents and the
testimony and the contractual obligation ltgtfJPO to keep thisinformation confidential JPO
requests that Exhibits 1 2 3~ and 4 be given in camera tteattnent pennanently The confidential
nature ofthe information is likelyto remain sensitive or become more sem~itive with the
p~ssage oftime in re lhra Lube Corp 1999 F1C Lexj~ 255 7~9
5
HI Condusio-1
For the reasons set forth above imdin the Affidavit ofRob A Yates JPO respectfully
requests that this Court grant permanent in camera treatmentto the Confidential Documents in
their entirety
Respectfully submitted
tsLarry S~dondelman Larry S Gondelman Powers Pyles Sutteramp Verville PC 1501 MStreet NW Suite 700 WashingtonDC 20005 2028726712
Jarry gondctmanci-[kbullWersliiw com
Counsel for Non~Party JPO
CERTIFICATE OFSpoundRVICE
1 hereby cert1fy that on June8 2018 the foregoing Motipn and exhibits havebeen served
via electronic mail on
WilliamCooke Federal Trade Commissmn wcooke(Jftcgo
Sean Zabaneh Duane Moms SSZabanel1(a)duartern~wrl~~lt1rt1middot
s(Lagy $ Gondelrnan Larry$ Gondelman
6
STATEMENT REGARDING MEET AND CONFER
The undersigned certifies that counsel forNon~Party Jonesboro PampO Labs notified
counsel for the pames via e mail on May 25 2018 that it would be filing a motion for in camera
treatmentof the documents produced and testimony provided by JPO that the parties intend to
utilize at trial in this matter Both couns~ltorthe Federal trade Commission and Otto Bock
advised that they do not object to JPOs motion
lstarry $ Gondelman middotLarry$ Gondelman igtowersmiddotPyles Sutter amp VervillePC 1501 M StreetNW Suite700 Washington DC 2000s 2028726712 lanmiddotxgpnddmauramiwersJdW~im
Counsel for NonPartyJPO
7
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JPO105
PX03036bull001
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JP0123
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JP0124
FXOS036-020
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E)(t-ltBIT 2 lN CAMERA JP0126
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
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SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
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HOUSTON OMAN Aci~TIN
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AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
HI Condusio-1
For the reasons set forth above imdin the Affidavit ofRob A Yates JPO respectfully
requests that this Court grant permanent in camera treatmentto the Confidential Documents in
their entirety
Respectfully submitted
tsLarry S~dondelman Larry S Gondelman Powers Pyles Sutteramp Verville PC 1501 MStreet NW Suite 700 WashingtonDC 20005 2028726712
Jarry gondctmanci-[kbullWersliiw com
Counsel for Non~Party JPO
CERTIFICATE OFSpoundRVICE
1 hereby cert1fy that on June8 2018 the foregoing Motipn and exhibits havebeen served
via electronic mail on
WilliamCooke Federal Trade Commissmn wcooke(Jftcgo
Sean Zabaneh Duane Moms SSZabanel1(a)duartern~wrl~~lt1rt1middot
s(Lagy $ Gondelrnan Larry$ Gondelman
6
STATEMENT REGARDING MEET AND CONFER
The undersigned certifies that counsel forNon~Party Jonesboro PampO Labs notified
counsel for the pames via e mail on May 25 2018 that it would be filing a motion for in camera
treatmentof the documents produced and testimony provided by JPO that the parties intend to
utilize at trial in this matter Both couns~ltorthe Federal trade Commission and Otto Bock
advised that they do not object to JPOs motion
lstarry $ Gondelman middotLarry$ Gondelman igtowersmiddotPyles Sutter amp VervillePC 1501 M StreetNW Suite700 Washington DC 2000s 2028726712 lanmiddotxgpnddmauramiwersJdW~im
Counsel for NonPartyJPO
7
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EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
STATEMENT REGARDING MEET AND CONFER
The undersigned certifies that counsel forNon~Party Jonesboro PampO Labs notified
counsel for the pames via e mail on May 25 2018 that it would be filing a motion for in camera
treatmentof the documents produced and testimony provided by JPO that the parties intend to
utilize at trial in this matter Both couns~ltorthe Federal trade Commission and Otto Bock
advised that they do not object to JPOs motion
lstarry $ Gondelman middotLarry$ Gondelman igtowersmiddotPyles Sutter amp VervillePC 1501 M StreetNW Suite700 Washington DC 2000s 2028726712 lanmiddotxgpnddmauramiwersJdW~im
Counsel for NonPartyJPO
7
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CONFl~NJAl-FTC DOCKETli378 SUBJECT TO PROTECTIIE ORDER
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E)(t-ltBIT 2 lN CAMERA JP0126
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EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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CONFlbENTIAL- FTC DOCKET 93c78 SLBJECTTOP~OTECTJVEORDE~
JP010S
PX03036--002 EXHIBIT1middot 111 CAMERA
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COfIFIDENTIAL- FTC DOCKET 11378 SUBJECT TOPROTECTIVE OROER
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EXHBIT 1 IN CAMERA
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JPOl0S
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
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May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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CONFIOENTIAL- FTC OOCllt1T937 SUBJECt TQ PROTECTIVEORDER
JPClt09
PX0303S005 EXHIBIT l IN CAMERA
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PX03038-008
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JP0111
PX03036-007 EXHIBIT 1 IN CAM ERA
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CONFIDENTlALmiddot FTC DOC~ET 8378 SUBJECiTO PAOTEClIVE ORDER middot
JP0112
PX03036-00B
EXHll31T 1 IN (AMEIA
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COlfflDENTIALmiddot FTC DQClltEt~78 SUBJEltiTTO PROJeirlVE ORDER
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
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EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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CONFIDENTlALmiddot FTC DOC~ET 8378 SUBJECiTO PAOTEClIVE ORDER middot
JP0112
PX03036-00B
EXHll31T 1 IN (AMEIA
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CONFIOENTIAL~FtQ DOCKET 9378 SUBJECTTOPROTECTIVEORDER
JP0113
PX03036bull009
EXHIBIT l IN CAMERA
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COlfflDENTIALmiddot FTC DQClltEt~78 SUBJEltiTTO PROJeirlVE ORDER
JPOH-4
PX0303S010 EXHIBIT 1 IN CAMERA
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JP011i
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JP0117
PX03036-013 EXHIBIT 1 IN CAMERA
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JP0118
PXO3036~014 EXHIBIT 1 IN CAMERA
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JP01111
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EXHIBITl INCAMERA
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JP0t20
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JP0121
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JP012l
PX03036018EXHIBIT IN CAMERA
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JP0123
PX03036()19EXHIBIT 1 IN CAMERA
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CONFIDENTIALbullFTC DOCKET 9378 SU~JECT TO PROTECTiVE ORDER
JP0124
FXOS036-020
EXHIBIT 1 IN CAMERI
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CONFIOENTIALcFTC O()CKET9378 Sl)BJECT tObullPROTfCTIVEOROER
JP0125
PXOS036-021 EXHIBITl INCAMERA
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CONFiDENTIAL0 FTC DOCKET937B SUBJECT TO PROTECTIVE ORDt R
E)(t-ltBIT 2 lN CAMERA JP0126
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CONi=IOFNTIAL- FTC DOCKET 9378 SUBJECTTO PROTECTIVE ORDER
EXHIBIT2 IN CAMERA JPOl27
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CONFIOENTIAL - FTC Docket No FTCJNBR~OOOOOB 9378 EXHIBIT 3 IN CAMERA
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EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
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SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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~f~~~1ovtR6ii=WR~3 ~
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
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SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
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AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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CONi=IOFNTIAL- FTC DOCKET 9378 SUBJECTTO PROTECTIVE ORDER
EXHIBIT2 IN CAMERA JPOl27
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COilalDRNTfAl - FTC DOCKET 9378 SUBJECT TO PROTECTIVE ORDERmiddot
EXHIBIT 2 IN CAMERA JP0 128
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CONFIDENlAL FrC DOCKET 9378 SUBJECT TO PROTECTvpound ORDEREXHIBIT2 INCAMERA
JP0129 middot
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EXHIBIT 2 IN CAMERA JP0130
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1 (Pages 1 to 4)
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
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Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
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Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
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Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
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Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
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Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
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Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
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Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
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Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
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Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
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Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
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AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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n (Pages 4 1 to 44)
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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19 (Pages 73 to 7~)
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20 (Pages 77 to78)
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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20 (Pages 77 to78)
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
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SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
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AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
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01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
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Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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3 (Pages 9 to 12)
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EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
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SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
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SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
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AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
REDACTED
4S (Pages 177 to 180)
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46(Pagesl81 to 184)
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EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
REDACTED
48 (Pagesbull 189 to 192)
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49 (Pages 193 to 196)
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50 (Pages 197 to200)
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EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
REDACTED
49 (Pages 193 to 196)
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50 (Pages 197 to200)
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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5J (Pages 20I to 204)
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
REDACTED
52 (Pages 205 to 208)
EXHIBIT 4 IN CAMERA
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53 (Pages 209to 212)
lXHlart 4 IN CAMERA
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54 Pages 21 Jto 216)
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55 (Pages 217 to 220)
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56(Pages 221 to224)
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57(Pages 22 5 to 228)
EXHIBIT4 IN CAMERA
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58 (Pages 229 to 232)
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59 (Pages 233to 234)
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EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
REDACTED
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
REDACTED
54 Pages 21 Jto 216)
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
REDACTED
56(Pages 221 to224)
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57(Pages 22 5 to 228)
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EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
REDACTED
57(Pages 22 5 to 228)
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EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
REDACTED
58 (Pages 229 to 232)
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
REDACTED
59 (Pages 233to 234)
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
REDACTED
EXHIBIT4 IN CAMERA
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fXHiBT 4 IN CAMERA
REDACTED
EXHlBIT 4 IN CAMfRAmiddot
REDACTED
EXHIBIT4 INCAMERA
REDACTED
EXHIBIT 4 IN CAMERA
REDACTED
EXHIBIT4 JNmiddot~MERA
RE-DACTED
poundXHIBIT4 IN CAMERA
REDACTED
EXttl~IT 4 middot111 CAMERA
REDACTED
EJIHIBIT 4 IN CAlllpoundRA
REDACTED
EXHIBIT 4 IN CAMERA
REDACTED
EkiilBfT4middot INCAMERA
REDACTED
EXHIBIT4 IN CAMERA
REDACTED
EllHISIT4 IN CAMEIA
REDACTED
EXHIBIT 4 1111 CAMERA
REDACTED
EXHIB[f4middot IN CAMERA
REDACTED
EXHIBIT4 IN CMERA
REDACTED
EXHIBIT 4 IN CAMERA
REDACTED
EXHIBff 4 IN CAMERA
REDACTED
EXHIBIT 4 1111 CAMERA
REDACTED
EXHlSrr 4 IN CAMUA
REDACTED
EXHIBIT 4 JN CAMERA
REDACTED
EllHIBlt 4 IN CA~E~A
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EXHielT4 IN CAMERA
REDACTED
REDACTED
EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
REDACTED
fXHiBT 4 IN CAMERA
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EXHlBIT 4 IN CAMfRAmiddot
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EXHIBIT4 INCAMERA
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EXHIBIT 4 IN CAMERA
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EXHIBIT4 JNmiddot~MERA
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EXttl~IT 4 middot111 CAMERA
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EJIHIBIT 4 IN CAlllpoundRA
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EXHIBIT 4 IN CAMERA
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EkiilBfT4middot INCAMERA
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EllHISIT4 IN CAMEIA
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EXHIBIT 4 1111 CAMERA
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EXHIB[f4middot IN CAMERA
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EXHIBIT 4 1111 CAMERA
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EXHlSrr 4 IN CAMUA
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EXHIBIT 4 JN CAMERA
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EllHIBlt 4 IN CA~E~A
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EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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EkiilBfT4middot INCAMERA
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EXHIBIT 4 1111 CAMERA
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EXHIBIT 4 1111 CAMERA
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EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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EXttl~IT 4 middot111 CAMERA
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EJIHIBIT 4 IN CAlllpoundRA
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EXHIBIT 4 IN CAMERA
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EkiilBfT4middot INCAMERA
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EllHISIT4 IN CAMEIA
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EXHIBIT 4 1111 CAMERA
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EXHIB[f4middot IN CAMERA
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EXHIBIT 4 1111 CAMERA
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EXHlSrr 4 IN CAMUA
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EXHIBIT 4 JN CAMERA
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EllHIBlt 4 IN CA~E~A
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EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
REDACTED
EJIHIBIT 4 IN CAlllpoundRA
REDACTED
EXHIBIT 4 IN CAMERA
REDACTED
EkiilBfT4middot INCAMERA
REDACTED
EXHIBIT4 IN CAMERA
REDACTED
EllHISIT4 IN CAMEIA
REDACTED
EXHIBIT 4 1111 CAMERA
REDACTED
EXHIB[f4middot IN CAMERA
REDACTED
EXHIBIT4 IN CMERA
REDACTED
EXHIBIT 4 IN CAMERA
REDACTED
EXHIBff 4 IN CAMERA
REDACTED
EXHIBIT 4 1111 CAMERA
REDACTED
EXHlSrr 4 IN CAMUA
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EXHIBIT 4 JN CAMERA
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EllHIBlt 4 IN CA~E~A
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EXHielT4 IN CAMERA
REDACTED
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EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
REDACTED
EXHIBIT 4 IN CAMERA
REDACTED
EkiilBfT4middot INCAMERA
REDACTED
EXHIBIT4 IN CAMERA
REDACTED
EllHISIT4 IN CAMEIA
REDACTED
EXHIBIT 4 1111 CAMERA
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EXHIB[f4middot IN CAMERA
REDACTED
EXHIBIT4 IN CMERA
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EXHIBIT 4 IN CAMERA
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EXHIBff 4 IN CAMERA
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EXHIBIT 4 1111 CAMERA
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EXHlSrr 4 IN CAMUA
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EXHIBIT 4 JN CAMERA
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EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
REDACTED
EkiilBfT4middot INCAMERA
REDACTED
EXHIBIT4 IN CAMERA
REDACTED
EllHISIT4 IN CAMEIA
REDACTED
EXHIBIT 4 1111 CAMERA
REDACTED
EXHIB[f4middot IN CAMERA
REDACTED
EXHIBIT4 IN CMERA
REDACTED
EXHIBIT 4 IN CAMERA
REDACTED
EXHIBff 4 IN CAMERA
REDACTED
EXHIBIT 4 1111 CAMERA
REDACTED
EXHlSrr 4 IN CAMUA
REDACTED
EXHIBIT 4 JN CAMERA
REDACTED
EllHIBlt 4 IN CA~E~A
REDACTED
EXHielT4 IN CAMERA
REDACTED
REDACTED
EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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EllHISIT4 IN CAMEIA
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EXHIBIT 4 1111 CAMERA
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EXHIB[f4middot IN CAMERA
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EXHIBIT 4 1111 CAMERA
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EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
REDACTED
EXHIBIT 4 1111 CAMERA
REDACTED
EXHIB[f4middot IN CAMERA
REDACTED
EXHIBIT4 IN CMERA
REDACTED
EXHIBIT 4 IN CAMERA
REDACTED
EXHIBff 4 IN CAMERA
REDACTED
EXHIBIT 4 1111 CAMERA
REDACTED
EXHlSrr 4 IN CAMUA
REDACTED
EXHIBIT 4 JN CAMERA
REDACTED
EllHIBlt 4 IN CA~E~A
REDACTED
EXHielT4 IN CAMERA
REDACTED
REDACTED
EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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EXHIB[f4middot IN CAMERA
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EXHIBIT 4 1111 CAMERA
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EXHlSrr 4 IN CAMUA
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EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
REDACTED
EXHIBIT 4 IN CAMERA
REDACTED
EXHIBff 4 IN CAMERA
REDACTED
EXHIBIT 4 1111 CAMERA
REDACTED
EXHlSrr 4 IN CAMUA
REDACTED
EXHIBIT 4 JN CAMERA
REDACTED
EllHIBlt 4 IN CA~E~A
REDACTED
EXHielT4 IN CAMERA
REDACTED
REDACTED
EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
REDACTED
EXHIBff 4 IN CAMERA
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EXHIBIT 4 1111 CAMERA
REDACTED
EXHlSrr 4 IN CAMUA
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EXHIBIT 4 JN CAMERA
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EllHIBlt 4 IN CA~E~A
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EXHielT4 IN CAMERA
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EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
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EXHIBIT 4 1111 CAMERA
REDACTED
EXHlSrr 4 IN CAMUA
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EXHIBIT 4 JN CAMERA
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EllHIBlt 4 IN CA~E~A
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EXHielT4 IN CAMERA
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EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
REDACTED
EXHlSrr 4 IN CAMUA
REDACTED
EXHIBIT 4 JN CAMERA
REDACTED
EllHIBlt 4 IN CA~E~A
REDACTED
EXHielT4 IN CAMERA
REDACTED
REDACTED
EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
REDACTED
EXHIBIT 4 JN CAMERA
REDACTED
EllHIBlt 4 IN CA~E~A
REDACTED
EXHielT4 IN CAMERA
REDACTED
REDACTED
EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
REDACTED
EllHIBlt 4 IN CA~E~A
REDACTED
EXHielT4 IN CAMERA
REDACTED
REDACTED
EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
REDACTED
EXHielT4 IN CAMERA
REDACTED
REDACTED
EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
REDACTED
REDACTED
EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
REDACTED
EJltHIBlTt IN CAMpound11A
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
middotmiddotmiddot~ -- UNITED STATES OF AMERICA
Federal Trade Commissionf~-middot - -l1t WASHlNGTON DC 20580 bullbull middot1
middotmiddotmiddotmiddotrI bull 1middot1middot bull bullbull~ 8urcau ofCompetition
Mcrg~rs I Dvision
May 24 2018
VIAEMAIL
RobertA Yates Jonesboro PampO Labs co Larry S Gondelman Powers Pyles Sutter ampVerville PCmiddot 1501 M Street NW 7th Floor Washington DC 20005
RE in the Matter o(Olto Bock Heatth(are Nortb America_ Int~bull E~4~LTrid~ltommission0kt No 9378
Dear Mt Gohdelman
By this lcenttter we are providing formal notice pursuant to Rule 345(b) of the CommissionS llules ofPracticei 16CFR sect 345(b) that Colllplaint Cpunsel intend to offer the documents and testitnony referenced in the enclosed Attachment A into evidence in the adm1nistrative trial ln the above~captioned matterThe administrative trial is scheduled to begin on July 10 2018 All exhibits admitted into evidence become part of the public record unless in camera status ismiddot granted by AdministrativeLaw Judge D Michael Chappellmiddot
For documents or testifnony which include sensitive or confidential infollllation that you do notwant on the public record you must file a motion seeking in camera status or other confidentiality protections pursuant to 16 CFRsectsect 345 4lO(g) Judge Chappell may order that materfals whether admitted or rejected as evidence be placed in camera ollly after findirtg that their public diic1osure will likely result in amiddot clearly defined serious injury to the person partnership or corporation requesting in camera treatment middot middot
Motions for in ccz11eraJrelJtment for evidence to be introduced attrial must meet the strict standards set forth
in
16 CFR sect 345 and explainedin In re 1-800 Contacts Inc 2017 FTC
LEXIS 55
(April 4 20l7)Jn re Jerk LLC 2015
FTC LEXIS 39 (Feb 232015) and1nre Basic Research Inc 2006 FTC LEXIS 14 (Jan 25 2006) Motions also must be supported by a declaration oraffidavit bya person qualified to explain the confidential nature ofthe documents In re 1-800 Contacts fnc 20J7 FTC LEXIS 55 (April 4 2017) ltire Notth Texas Specialty Physicians 2004 FTC LEXIS 66 (April 23 2004) You must alSo provide one copy of the dccumerits for whichin camerdtreatment is sought to theAdministrative LawJudge middotmiddot
EXHIBIT 5 PUBLIC
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June 11 2018
Ifyou have anyquestions please feel free to contactrneat (202) 32~-2331
Sincerely
ua-middot_pound~---William Cooke CounselSupportingthe Complaint
2
EXHIBIT 5 PU BUC
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
Attachment A
DateExhibit No Description BegBates EndBabts PX03036 JonesboroPampO Document Arkansas BlueCross 00000000 JPO105 JPOt25
BlueShield Fee Schedule PX05003 middot rnvestigatiohal HearingmiddotTranscript of RobYates middot 11292017 FTC-PROD- FTC-PROD- middot
(Jonesboro Pamprn middot 005019 005051 PX05108 Deposition Transcript ofRob Yates (Jonesboro 382018 PX05108~001 PX05108-097
PampOLabsl Igt
Page 1 on EXHIBIT 5 PUBLIC
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
NEW YORK SHM3HA1
LONDON QuaneVforris r~ 7LANTA
SINGPORE BAlIMORE l1-JUDEU1HJA lbulll( l fftti Al 1UA-1imiddot ()Fl-(t~ WIMINGTOI
~HAM WASIINCTON OC llOCRtbullmiddotoI SiN FRANCISCO TlS0URGMSEAN S ZABANEH
SILltOlYALlE MWARK SA1DIFGlJ LASmiddotVEGAS
DIR~C Dfil d 21 i 979 1 I 49 PlRSONAL FAgtmiddot+J 2 156894964
l OS NGE ES E-MAk ltSZabnnehfgduaae110rr1scom CHERRY HltL -TlWAN LA~ JAHDE BbSWN bull1bull11bull1bulld11anemorriscom iliY~t11AR
HOUSTON OMAN Aci~TIN
01 t middot middot bull (JJiRS HANOr
AU ANCES IMEXT( )
ANJ SRILIIMU
May 292018
VIA EMAIL AND FEDEX
RobertA Yates Jonesboro PampOLabs co Larry S Gondelman middot Powers Pyles Sutter amp Verville PC 1501 M Street NW 7th Floor t
Washington DC20005
Rebull ln the Matter ofOtto Bock HealthCare North America Inc Federal Trade Commissfon Dkt No 9378
Dear Mr Gondelrrianmiddot
Bythisletter we are providing formal notice pursuant to Rule 345(b) ofthe Federal Trade Commissions Rules of Practice 16CFR sect 345(b) that Respondent Counsel intetidto offer the documents and testi111ony referenced in the enclosed AttachrnentA into evidencein the administrative trial in the above-captioned matter The administrative trial isscheduled to beginmiddot on July lQ 2018All exhibits adm1ttedjrito evidencemiddot become part ofthe public record unless in camea status is granted by AdministrativeLaw Judge D Michael Chappell
For documents or testimony whichinclude sensitive or confidential information that you do not want on the public record you must file a motion seeking iri camera status or othermiddot confidentiaHtybullprotections pursuant to 16CFR middot sectsect 3454lO(g) Judge Chappell mayorder that materials whether admitted or rejected as evidence he placed in camercr only after finding iliat the1t public disclosure will hkely Tesultin a deadydefiried serious injt1ry to the person partnershipor corporation requesting in camera treatment
Motions for in camera treatme11t forevidence to be mtroducedattrial must meetthe stnct standards set forth in 16 CFR sect J45and explained in In re 1-800 Contacts1nc 2017 FTC LEXIS 55 (April 42017) In re JerkLLC 2015 FTCLEXIS 39 (Feb 232015) and In re Basic Re~earch Inc 2006 FTC LEXIS 14 (Jan~ 25 2006) Motions also must be supported by a declaration or affidavit by a person qualified to explain the confidential nature of the documents
u $OU H I 7i $ I lt iiEl pj ADEllHIA PA Jv-~ 1
EXHIBIT 6 PUBLIC
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
DuaneIlforrisRobert A Yates Jonesboro PampO Labs May 29 2018 Page 2
In re 1~800Contacts Inc 2017 FTC LEXIS 55 (April 4 2017) 1n re North Texas Specialty Physicicms 2004 FTC LEXIS 66 (April 23 2004) You must also provide one copy ofthe documents for which in camera treatment is sought to the Administrative Law Judge
Please be aware that under the current Scheduling Order dated April 26 2018 the deadline for filing motions seeking in camera status is June ll 2018
middotIf yomicromiddothaveany questions please feel free to contact meat215-979-l 149
Very truly yours
Isl Sean S Zabaneh
Sean s Zabaneh
ssz Enclosures
cc Sean P McCom1ell Sarah ()Laughlin Kulik
EXHIBIT 5 PUBLIC
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
Attachment A
Exhibit No Description Date BegBates EndSatas RX0995 Deposition Transcript of Robert Yates (Jonesboro
OampP 03082018 RX~0995middot
00001 RXmiddot0995bull
00097 RX0905 JonesboroLCodeFee Schedule Price Chart Unknown JFO126 JPO130
Pagel ofl
EXHIBIT 6 PUBLIC
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION
OFFICE OJ ADMJNISTRATIVE LAW JUDGES
ln the Matter of ) Otto Bock HealthCare North America Inc )
middot ) DocketNo 9378 )
Respondent )
~------------------------- )
DECLARA TION OF ROB A YATES
J Rob A Yates pursmicroant to28 USC sect 1746 state and declare as folkgtws
l lam the presidentbull and CEO ofDavid A middotYates and Associates doing business as JPampQ
Prosthetic 8lQrthotic Laboratory andJonesboro Prosthetic amp Orthotic Laboratory eJPO~) I
havebullserved in these positions since September 2007
2 JPO provides prosthcentic and orthotic services to patients
3 JPO received severatsubpoenas in com1ection withthe above-captioned matter Pursuant
to these subpoenas JPO produced several documents Those documents include two docum~ts
that have beenidentified by the parties as documents that they intend to use atthe trial in this
matter
4 One document is alisting ofthe fee schedule hetween JPO and Arkansas BlueCross
BlueShieldfABCBSJ That document labeledJPOOl05 JP00125 is Exhibit 1 to the Non~
PartyJon~sb6ro PampOmiddotLabs~ Motion forln Camera Treatment Then JPQ produced this
document it marked itas confidential and as $ubject to protective order the document was
so labeled becauseit contained highly sensitive business inforrhation In fact the informationmiddot
contained mthis documentis governed by anagreementbetweenJPO and ABCBS that includes
a confidentiality clause obligating the parties to the agreement to maintain the confidentiality of
EXHIBff7 PUBLIC
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
among other things the fee schedule A copy of the page ofthe agreement with the
confidentiality clauseis Exhibit 9 to the Motion
5 theother document that the parties intend to use at trial is a fee schedule that contains
the reimbursement amount that ten different payers have agreed to pay to JPO for various
prosthetic components This document labeledJPOOl26- JP001JO is Bxhibit2 to the Nonshy
Party lltmesboro PampO Labs Motion for In Camera TreatmenJ When JPO produced this
document it marked it as confidential and as subjectto protective order Tltedocument was
so labeled because it contained highly sensitive business information The information contained
in this documentis governed by agreements between JPO and the various payers that inelude
confidentiality climses obligatingthe parties to the agreern~nts to maintain the confidentiality of
among other things the fee schedule
6 Had these documents not been subject to the Protective Orderi11 this case I woulcl have
refused to produce them
7 Tlie parties to this matter havealso notified JPO that they intend to introduce at trial
p0rtions ofmyinvestigative testimony transcript and my deposition transcript They have not
identifi_ed the particular portions oftile testimony th11t they intendto use
8 I havereviewed both transcripts and have designated those portions ofmy testimony that
either directly relate to Exhibits 1 and 2 ordiscuss busjness strategy oqm1ctices relating to the
costs ofparts purchased byJPO or the reimbursement by payers for prosthetic devices made by
JPO MytestirrumY ortthese subjectsis highly cpnfidential as it relates to the private financial
information ofJPO A listing of the eic~rpts for which JPO is seeking in camera treatment 1s
Echibit 8 to the Motion
2
EXHIBIT 7 PUBUC
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
9 Both JPO and ABCBS have strong interests in keeping their fee schedule confidential
JP0wotlld suffer irreparable harm should competitors other payers and suppliers learn of its
pricing tcnns with other suppHers and payers For exampleifanother payer is payingJP0 more
than ABCBS for a particular component and that other payer learns that it is paying more than
ABCBS thatpayerwould use thatirtformationto negotiate a lower reirribmsementrafo for JPQ
Similarly ifa competitor ofJPOleams thaUPQ has better pricing than itdoes on certain knees
iLGould use that information to negotiatethe same tenns eliminatingJPOs competitive
advantage
10 Theinfonnationin Exhibit 2 is even moremiddot sensitive than Exhibit l as Exhibit 2 includes
tbereimburscinentrate founultipie payers for a variety ofprostheticcomponents Th1S1 it
includ~ not only infonnation ~boutABCBS b11t compares the reimbursement paid byABCBs
to tile other payers with which JPO has contracts As noted previously the agreements with
these payers contain confidentiality provisions similartotlle cme citedmiddot above with ABCBS For
example the UHC agreement provides
99 Confidentiality Neither party wm disclose to a CWtomer other health care providers or other third parties any ofthe following information(excentept as required by an agency ofthe govenl1lle11tbull
middot a any proprietary business information not ava(lable to the general public obtained by the party from the other party or
b the spcentcific reimbursemennunounts provided for under this Agreement exceptfor purposes ofmiddotadministration ofbenefits
See Exhibit 10
l l The transcript excerpts listed in Exhibit8 demonstrate that the testimony hsted rcent1ates to
thisltconfidential pricing irtfonnation and related subjects Thereforemiddot it is as sensitive as the
infonnation ~ontained on the documemicrots
12 JPOs pricing information with various payers is notknown outside ofthe busine$s
3
EXHIBIT 7 PUBLIC
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
13 JPO and the payers have taken measures to guard the secrecy oftheir contractual
arrangements
l 4 The information ampbout reimburscentment rates between JPO and various payers would be
extremely valuabletcfother pay~rs and to JPOs competitors Bild the information cannot easily be
acquired by those other payers or competitors
l declare under the penalty ofperjury that the foregoing is true and correct
Executed on this 7 day offone2018
4
EXHIBIT7 PUBLIC
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
EXCERPTS OF TESTIMONY FOR WHICH IN CAMERA TREATlfENT ISmiddotSOUGHT
Excerpts ofDeposition Testimony of M~rch 8 2018 -
PageLine _ Subi~t Matter ofTestimony
178c189 property owned by family
205-2019 number ofprosthetics fit byRob Yates in 2017
23lh2417 number ofptosthetic knees by JPO
28_5-292 length oftime pricing terms last
293~302 price pai~ for Plie and CcLeg
363-37 Z4 allowed charge for MPnees
SLJ-526 range ofprices offered for MP knees
price paid 1cgty Jpo
56IQ-57T6 middot prices and effectofpricejncrease
57-18607 numbers- ofPlies and c~Legs
608-614 reimhursementfor Plie and C-Leg is the same
61564l purchasing decisions and pricing including numbers purchased
6813-7213 Quattro
7314-747 Plie and c-Leg compete on price
7524~7717 higher margins enable-JPOto offer certain patientbullservices
9l5-9L12 percentage o-frev~nue from upp~r bodydevices
9116-9124 percentage ofrevenue from lower body devices
9210964 nwnbers ofdifferertt NfP middot 1a1ees percentage ofunits including knees
9821-99 amountofmoney spent on MP knees
9923-1033 numbers ofknees arid feet cost ofPlie
EXHIBIT 8 PUBLIC
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
11116-11710
11814-12119
1322-13220
13422-137 7
1402-1416
14423-14514
159J 1608
1719-17215
1731-17321
middot19725-2044
120516-2093
21425~221 20
2292-230l
pricing discounts
pricing ofnon-MP knees and discounts
reimbursementmiddot amount fr0tn Medicare
middotreimbursement rates
UHCtates
reimbursement rates
numlgter ofpatients
discounts
discounts
effeQtofprice increases
tffect ofprice increases
Quattro
Exhibit 2 reimbursementrates
i EXHIBIT 8 PUBLIC
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
Excerpts of Investigative Testimony ofNovember 29 2017
PageLfoe Suhiect Matter
l7J2-l7l8 number ofpatients percentage withMK knee
182 i-191 ~ middot amount spent on MK knees
298-33l CMS reimbursementrate
5011-5318 range ofcosts
5619-5820 middot cost and nUllbers purchased from each manufacturer
602+6724 c-Leg v~ P11e
6220-6724 Quattro
6812~6916 pricenting stru~1urcent by Otto Bock andFreedom
74~-7524 hi~ermarginsbenefitpahentsmiddot
3
tXHIBIT8 PUBLIC
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
t ConfideTittahy
ABCBS and Provider agree to maintain the confidentiality of the following data and documents the Allowance or any Fee Schedule of ABCBS any othet compensation set forth in this Agreement the Provider Manual utilization teviewprogramoutlines or guidelin~ ofABCBS or any other written policies or procedures ofABCBSor ofPayers furnished to Provider The terms ofthis Agreement are confidential and the p~es agree not to disclose such terms to third parties except as necessary to perform under this Agreementor as required by law or regul11tion
Page 12 of 14 PampOPPP853PNO 0805 -EXHIBIT 9 PUBLIC
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
99 Confidentiality Neither party will displo~te a Customti ot1ier fuaith cateprovjders or other third plrties any ofthe following itiforroatfon ~x~ept as nqw-ed by an ag~cyofthe gov~cilt) middot
bulla) ~YPt()prletarybusiuess infoiination notavailable tothe general public obtailiedmiddotby the patty frQm the othei-iarty or
b) the sptttfic teiuibmicrorsem~t 8llloints providedfor 11nder tllis Jgnicmont ecceptfor purposes of 11dminisiraticln (tflicentfits middotmiddot
lJNIIBDHEALTHCAAE UHCIFPAANC0406AR Co~ntiaiand lropneat) Pace 12of20
EXHIBIT 10 PUBUC
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
Notice ofElectronic Service
I hereby certify that on June 08 2018 I filed an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT with
D Michael Chappell ChiefAdministrative Law Judge 600 Pennsylvania Ave NW Suite 110 Washington DC 20580
Donald Clark 600 Pennsylvania Ave NW Suite 172 Washington DC 20580
I hereby certify that onJune 08 2018 I served via E-Service an electronic copy ofthe foregoing NON-PARTY JONESBORO PampO LABS MOTION FOR IN CAMERA TREATMENT upon
Steven Lavender Attorney Federal Trade Commission slavenderftcgov Complaint
William Cooke Attorney Federal Trade Commission wcookeftcgov Complaint
Yan Gao Attorney Federal Trade Commission ygaoftcgov Complaint
Lynda Lao Attorney Federal Trade Commission llaolftcgov Complaint
Stephen Mohr Attorney Federal Trade Commission smohrftcgov Complaint
Michael Moiseyev Attorney Federal Trade Commission mmoiseyevftcgov Complaint
James Weiss Attorney Federal Trade Commission jweissftcgov
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
Complaint
Daniel Zach Attorney Federal Trade Commission dzachftcgov Complaint
Amy Posner Attorney Federal Trade Commission aposnerftcgov Complaint
Meghan Iorianni Attorney Federal Trade Commission miorianniftcgov Complaint
Jonathan Ripa Attorney FederafTrade Commission jripaftcgov Complaint
Wayne A Mack Duane Morris LLP wamackduanemorriscom Respondent
Edward G Biester III Duane Morris LLP egbiesterduanemorriscom Respondent
Sean P McConnell Duane Morris LLP spmcconnellduanemorriscom Respondent
Sarah Kulik Duane Morris LLP sckulikduanemorriscom Respondent
William Shotzbarger Duane Morris LLP wshotzbargerduanemorriscom Respondent
Lisa De Marchi Sleigh Attorney Federal Trade Commission ldemarchisleighftcgov Complaint
Catherine Sanchez Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
Respondent
Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
Larry Gondelman Attorney
Federal Trade Commission csanchezftcgov Complaint
Sarah Wohl Attorney Federal Trade Commission swohlftcgov Complaint middot
Joseph Neely Attorney Federal Trade Commission jneelyftcgov Complaint
Sean Zabaneh Duane Morris LLP SSZabanehduanemorriscom Respondent
Dylan Brown Attorney Federal Trade Commission dbrown4ftcgov Complaint
Betty McNeil Attorney Federal Trade Commission bmcneilftcgov Complaint
Stephen Rodger Attorney Federal Trade Commission srodgerftcgov Complaint
Christopher H Casey Partner Duane Morris LLP chcaseyduanemorriscom Respondent
Simeon Poles Duane Morris LLP sspolesduanemorriscom Respondent
Andrew Rudowitz Duane Morris LLP ajrudowitzduanemorriscom Respondent
J Manly Parks Attorney Duane Morris LLP JMParksduanemorriscom
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Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
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Jordan Andrew Attorneymiddot Federal Trade Commission j andrewftcgov Complaint
Kelly Eckel Duane Morris LLP KDEckelduanemorriscom Respondent
Theresa A Langschultz Duane Morris LLP TLangschultzduanemorriscom Respondent
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