Amgen pleads guilty, to settle misbranding case for $762 million













Amgen


Drugmaker Amgen Inc. of Thousand Oaks reached a settlement Tuesday in a federal investigation of its sales and marketing practices.
(Paul Sakuma / Associated Press / December 17, 2012)































































Biotech giant Amgen Inc. pleaded guilty to a federal misdemeanor of misbranding its anemia drug Aranesp and has agreed to pay $762 million in fines and penalties.


The Thousand Oaks company said it had reached a preliminary settlement of federal criminal and civil investigations last year and had already set aside about $780 million to resolve several related cases.


A spokesman for the U.S. attorney's office in Brooklyn said a federal judge is scheduled to hold another hearing on the settlement Wednesday.





Amgen said the "plea and sentence remain subject to judicial review and approval" and it expects to resolve the related civil and criminal matters once that process is complete.


Federal prosecutors accused Amgen of promoting Aranesp for uses that weren't approved by the U.S. Food and Drug Administration, a common claim brought by government officials against big pharmaceutical companies.


Amgen's shares were up 7 cents to $89.57 in mid-session trading Tuesday.


Aranesp, which is used primarily to treat anemia in cancer patients, generated sales of $2.3 billion last year. But sales of Amgen's anemia treatments have slumped in recent quarters due partly to safety concerns.


In recent years, federal prosecutors have aggressively pursued whistleblower fraud cases against large drug makers and won major settlements.


In July, GlaxoSmithKline agreed to plead guilty to federal charges and pay $3 billion in the largest healthcare-fraud settlement in U.S. history.


However, some critics say the government's enforcement efforts don't go far enough since the company executives involved usually don't face significant penalties or jail time.


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Fault lines also appearing on Democratic side in fiscal debate









WASHINGTON — For weeks, Democrats in Congress have been relishing the division and sniping within Republican ranks over whether to raise tax rates. But as negotiations over the budget crisis wear on and shift to a debate over spending cuts, the tables are turning.


Democrats last week aired their own internal battles in the war over the federal deficit. In a petition, a newspaper column, letters and sharply worded comments, top Democrats on Capitol Hill warned the president to protect the social safety net and step back from previous proposals to make major changes.


White House officials insist nothing is off the table, tacitly acknowledging that the president is weighing potential changes to Medicare, Medicaid and Social Security as he negotiates with House Speaker John A. Boehner (R-Ohio). Although both sides have been reluctant to put details in writing, any deficit reduction deal will almost certainly require significant alterations to these entitlement programs.





Boehner made a fresh offer in a phone call with the president Friday: The speaker would agree to allow tax rates to rise on those earning more than $1million in exchange for “substantial” reductions in spending and entitlements, according to an aide familiar with the negotiations who was not authorized to speak about the details.


Yielding on tax rates would be a substantial concession for the Republican leader, who had previously said that new revenue would come only from reforming the tax code next year in a way that could lower all rates. Democrats have dismissed that approach as not penciling out.


Boehner’s offer also could resolve the thorny issue of raising the nation’s debt limit, which will come up early next year. He wants to match new borrowing capacity with at least as much reduction in spending, but Democrats have resisted those efforts.


The White House does not appear to have accepted Boehner’s overture, although the lines of communication remain open.


“There is no agreement, nor is one imminent,” said Boehner spokesman Michael Steel over the weekend.


As for Democrats, the debate is the president’s first major postelection leadership challenge. It could determine not only whether a deal passes, but whether Obama can repair four years of ragged relations with his allies in Congress.


The debate is the president's first major postelection leadership challenge. It could determine not only whether a deal passes, but whether Obama can repair four years of ragged relations with his allies in Congress.


The Democratic fault lines were apparent last week. More than 80 Democrats signed a letter to Obama urging him not to agree to a deal that would raise the eligibility age for Medicare. Obama had moved in that direction last year in a failed attempt to craft a "grand bargain" with Boehner, considering an increase phased in over time.


"It will do great harm to our economy and millions of seniors to raise the Medicare eligibility age or enact other significant cost-shifting alternatives," the lawmakers wrote.


House Minority Leader Nancy Pelosi (D-San Francisco) was blunt. "Don't even think about raising the Medicare age," she said at a news conference Thursday, a day after an opinion piece she wrote appeared in USA Today. Pelosi left little wiggle room for the president, writing that raising the eligibility age "betrays the bedrock promise of Medicare."


Rep. Chris Van Hollen, the top Democrat on the House Budget Committee, has been in regular contact with administration officials involved in talks with Republicans. Van Hollen, of Maryland, said the White House was "doing a good job of keeping members of Congress informed consistent with the need to preserve the integrity of their discussions with the speaker," and that members "have confidence that the president is fighting for the priorities he talked about during the election."


"I should also say," he added, "we have let our members know that they should feel free to express their views directly to the president and to the White House, and they're doing that."


Democratic senators weighed in at a lunch Thursday with Gene Sperling, director of the White House's National Economic Council.


"We all understand compromise involves things we may not like — we understand that," Sen. Benjamin L. Cardin of Maryland said. "But I think there are certain parameters that we made pretty clear."


One is raising the Medicare eligibility age, now 65. Republicans have pushed to increase the age over time to 67. Sen. Richard J. Durbin of Illinois, the Senate's No. 2 Democrat, said that such a move was "not on the table."


Some Democrats, though, have signaled an openness to changes, such as charging higher Medicare premiums or curtailing health benefits for wealthier elderly people.


The White House sees the president's challenge as a matter of capitalizing on his reelection victory, convincing not only Republicans but also wary Democrats that Obama has a mandate to negotiate a deal that raises taxes on the wealthy and also cuts spending on entitlements.





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RIM begins BlackBerry 10 tests with business, government clients






TORONTO (Reuters) – Research In Motion Ltd said on Monday that it had begun a “beta testing” program that allows 120 companies and government departments to try out its new BlackBerry 10 smartphones before their global launch on January 30.


The Canadian company, which is trying to reverse a sharp decline in market share for the BlackBerry, said the program would enable so-called enterprise customers in business and government to size up the BB10.






Features of the BB10 include the ability to separate personal and business information so that the user can store both without compromising security.


RIM has struggled in recent years to hold on to its base of enterprise customers, which typically pay a higher subscription fee than consumers, as their employees push to use devices such as Apple Inc’s iPhone for business as well as personal communications.


“This is a crucial step for us in getting our large enterprise customers ready to support BlackBerry 10 at the point of launch date, as opposed to post-launch date,” Bryan Lee, senior director for enterprise accounts, said in a phone interview.


RIM is providing the software and handsets at no charge, and the companies do not have to buy anything once the trial is finished.


The company plans to release its quarterly results on Thursday, and analysts expect it to report its third straight loss as it struggles to sell its older devices.


RIM made its name selling mobile email devices to bankers, lawyers and other professionals before expanding to sell phones to consumers.


The company said the BB10 testers were from financial, insurance, healthcare, manufacturing, media, and distribution industries and include 64 Fortune 500 companies, as well as government departments.


Lee would not identify any of the entities, beyond Integris Health and the U.S. Immigration and Customs Enforcement agency, which have both said they are testing the new devices.


The customers have installed test versions of RIM’s new server software, which manages iPhones and devices using Google Inc’s Android software as well as BlackBerrys, and will each receive two preproduction BlackBerry 10 handsets later this week.


RIM shares were down 2.1 percent at C$ 13.59 in morning Toronto Stock Exchange trading.


The stock has rallied from September’s multiyear lows around C$ 6.50 on a wave of optimism over the new devices, but the share price is still far below mid-2008 highs of around C$ 150.


(Reporting by Alastair Sharp; Editing by Lisa Von Ahn)


Tech News Headlines – Yahoo! News





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TV network aimed at millennials set for summer


NEW YORK (AP) — Participant Media plans to launch a cable network aimed at viewers 18 to 34 years old with programming it describes as inspiring and thought-provoking.


The as-yet-unnamed network is set to start next summer with an initial reach of 40 million subscribers, the company announced Monday.


Targeting so-called millennials, Participant is developing a program slate with such producers as Brian Graden, Morgan Spurlock and Brian Henson of The Jim Henson Company.


Evan Shapiro, who joined Participant in May after serving as President of IFC and Sundance Channel, will head the new network.


Parent company Participant Media has produced a number of fiction and nonfiction films including "Charlie Wilson's War," ''An Inconvenient Truth" and Steven Spielberg's current biopic "Lincoln."


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John Rosen, Doctor Who Pushed to Prevent Lead Poisoning, Dies at 77





Dr. John F. Rosen, a pediatrician whose discovery of high levels of lead poisoning among the New York City children he treated propelled him to campaign for a national effort to prevent the condition, died on Dec. 7 in Greenwich, Conn. He was 77.




The cause was colon cancer, his wife, Margaret, said.


When he arrived at Montefiore Medical Center in the Bronx in 1969, Dr. Rosen was mainly interested in how children’s bodies absorb calcium. But within a few years, concerned about the levels of lead he was seeing in his young patients and knowing that lead poisoning diminished mental capacities irreversibly, he embarked on a mission. Dr. Rosen helped establish one of the nation’s first and largest clinics for the treatment of lead poisoning; he personally supervised the treatment of 30,000 children. In one advance, he developed X-ray techniques for measuring lead in children’s bodies.


He went on to push New York City to adopt stricter standards for removing lead paint from tens of thousands of older buildings. (The use of lead paint had been outlawed in 1978.) In 1991 he led a committee at the Centers for Disease Control and Prevention in Atlanta that lowered the threshold at which children are considered to be poisoned by lead, to 10 micrograms per deciliter of blood from 60 micrograms.


But even that threshold was too high, Dr. Rosen believed, and he immediately began lobbying to reduce it further. This year, the C.D.C. halved it to 5 micrograms. The change could not help those who had lead in their bodies, but it sounded an alarm that even infinitesimal quantities of lead could be dangerous.


“It’s about time,” Dr. Rosen said.


He cited his own and others’ studies showing that lead poisoning harms a person’s ability to think and plan, as well as physical coordination. For a child with an I.Q. of 85, he said, lead exposure “could mean the difference between a menial job in a fast-food restaurant or a meaningful career.”


Dr. Rosen’s ambition was to eventually eradicate lead poisoning by eliminating exposure to lead altogether, in the manner that vaccines reduced the incidence of polio to almost none. He served on committees of the National Academy of Sciences and urged spending tens of billions of dollars to remove old lead paint from tens of millions of homes, calculating that lead exposure harmed far more children than asbestos.


Landlords and some government officials disputed the need for such a large-scale effort, arguing that lead poisoning had dropped sharply in recent decades as lead was removed from gasoline and that the use of lead paint had abated.


Dr. Rosen often testified in suits against property owners, leading some to suggest that his crusade was motivated by the prospect of personal financial gain from payments by plaintiffs’ lawyers.


He also had critics in the news media. In 2003 Andrew Wolf, then a columnist for The New York Sun, argued that the war against lead poisoning had been won and accused Dr. Rosen of practicing political, not medical, science. In 1992, Newsday questioned whether he was a “well-meaning prophet or merely an alarmist.”


Dr. Rosen replied: “I am not an alarmist. I cannot keep quiet when kids’ futures are at stake.”


John Friesner Rosen was born in Manhattan on June 3, 1935. His parents volunteered for civil rights and leftist causes and traveled to China to meet with Chou En-lai before President Richard M. Nixon’s historic trip there in 1972.


Dr. Rosen graduated from Harvard and the College of Physicians and Surgeons of Columbia University, did his residency at the Columbia-affiliated Babies Hospital and became a researcher at Rockefeller University. He moved on to Montefiore, where he became a pediatrics professor and head of environmental sciences at its Children’s Hospital. His focus was underprivileged children living in substandard housing.


In one instance, he encountered two young sisters who had made repeated visits to the hospital with very high levels of lead in their blood. He decided to accompany them home, but the home, he discovered, had been inspected and the paint found safe. He then accompanied them to a park, where they climbed up and down a fence. It was covered with lead paint.


Dr. Rosen started his lead clinic in the early 1970s. He later opened “safe houses,” where families could come while lead paint was removed from their homes. When lead paint was discovered in a Manhattan elementary school in 1992, he spoke out, calling the school “a toxic dump.” It was closed for a cleanup.


Dr. Rosen lived in Stamford, Conn. His first marriage, to Katharine Lardner, ended in divorce. He is survived by his wife, the former Margaret Hiatt; two children from his first marriage, Carlo, a physician, and Ellis Lesser; a daughter from his second marriage, Emily Reilly; and nine grandchildren.


Dr. Rosen’s concerns about lead poisoning went beyond residents of low-income housing. In 1988, he warned against eating Florida grapefruits because they had been sprayed with lead arsenate to speed ripening. Two years later, he reported seeing 30 or 40 cases of lead poisoning each year among children of wealthy people who had bought and restored brownstones.


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Santa Ana-based Edison Mission Energy files for bankruptcy









Edison Mission Energy, an unregulated power-generating unit of Rosemead-based Edison International, said Monday that it had filed for bankruptcy and had agreed on a reorganization plan with its parent company and holders of its $3.7 billion in debt.


 “We are pleased to have reached this agreement, which we believe reflects the long-term value potential of our organization,” Pedro Pizarro, president of Edison Mission Energy, said in a statement. “This is an important first step in the process to reduce our debt, enhance our liquidity profile and position EME for continued operation and future success."


As part of the deal, Edison Mission Energy will be deconsolidated from Edison International “as of the filing date” and, in the future, will be referred to by the parent company as discontinued operations.





Edison International’s stake in the bankrupt generating unit will be transferred to unsecured creditors.


Santa Ana-based Edison Mission Energy said it had slightly more than $5.1 billion in assets and just under that amount in liabilities in Chapter 11 papers filed Monday in the U.S. Bankruptcy Court in the Northern District of Illinois.


Edison Mission Energy has been struggling on several fronts: depressed energy prices because of the nation’s boom in natural gas production; higher fuel costs affecting its older coal-fired facilities; and pending debt maturities.


The company also said, in the statement, that it faced the “need to retrofit its coal-fired facilities to comply with environmental regulations.”


Despite the challenges, Pizarro sought to strike a positive tone on Edison Mission Energy’s future.


“We believe this financial restructuring — coupled with the existing strength of our employees and assets — will position us to take advantage of new opportunities while preserving our focus on safe, reliable operations,” Pizarro said.


Edison Mission Energy companies own, operate and lease a portfolio of more than 40 electric generating sites around the U.S. that are powered by wind, natural gas, biomass and coal, as well as an energy marketing and trading operation based in Boston.


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Speculation over autism, but shooter's 'why' has no easy answer









Among the details to emerge in the aftermath of the Connecticut elementary school massacre was the possibility that the gunman had some form of autism.


Adam Lanza, 20, had a personality disorder or autism, his brother reportedly told police. Former classmates described him as socially awkward, friendless and painfully shy.


While those are all traits of autism, a propensity for premeditated violence is not. Several experts said that at most, autism would have played a tangential role in the mass shooting -- if Lanza had it at all.





FULL COVERAGE: Connecticut school shooting


“Many significant psychiatric disorders involve social isolation,” said Catherine Lord, director of the Center for Autism and the Developing Brain at New York-Presbyterian Hospital.


Autism, she said, has become a catch-all term to describe anybody who is awkward.


Some type of schizophrenia, delusional disorder or psychotic break would more clearly fit the crime, experts said.


The hallmark characteristics of autism are social inability, communication problems and repetitive behaviors or obsessive interests. It emerges in early childhood and exists on a vast spectrum, from those who bang their head against the wall to those who can recite train schedules from memory.


PHOTOS: Connecticut school shooting


The rate of autism has skyrocketed over the last two decades, largely because of an expanded definition of the disorder and increasing awareness. The U.S. Centers for Disease Control and Prevention estimates that 1 in 88 children have it.


Researchers have struggled to draw clear lines between the various forms. As a result, the American Psychiatric Assn. is folding all of its varieties into a single diagnosis next year: autism spectrum disorder.


It will include people with Asperger’s syndrome -- the higher-functioning type that Lanza was most likely to have had.


There is more aggression associated with autism than with other disabilities. But it usually amounts to a tantrum and does not involve planning, weapons or an intention to harm anybody.


People with autism are more likely to be victims of violence than perpetrators. Those who are bright -- as Lanza was by several accounts -- often face bullying.


Some wind up in trouble with the law because they are unaware of social convention, and quirkiness or attempts at being friendly get misinterpreted.


Dr. John Constantino, an autism specialist at Washington University in St. Louis, said the social detachment and withdrawal associated with the disorder can accentuate other psychiatric conditions that are connected to violence.


And the feelings of isolation often intensify after high school, with the loss of a structured environment that allows many people with autism to stay afloat.


“They sort of fall off this cliff when they don’t have a village,” Constantino said.


Lanza finished high school early and was living with his mother. Police said he was disturbed by the divorce of his parents in 2009.


None of that, of course, explains why his killed his mother, 20 elementary school students, six women at the school and then himself.


“The only way somebody could do something like this is if they totally lost touch with reality,” said Dr. Daniel Geschwind, an autism expert at UCLA. “Autistic people are not sociopaths.”


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alan.zarembo@latimes.com



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Springsteen, Gaga join Stones; Newtown noted


NEW YORK (AP) — Only at a Rolling Stones concert could appearances by Bruce Springsteen and Lady Gaga seem almost like afterthoughts.


Those superstars and other top acts including the Black Keys and John Mayer jammed with the Stones on Saturday night, winding down a series of concerts celebrating the 50th year of rock's most enduring band (the occasion was also marked by a pay-per-view special).


The Boss rocked out with the band on out "Tumbling Dice"; Gaga matched Mick Jagger shimmy-for-shimmy on "Gimme Shelter"; the Black Keys joined on "Who Do You Love," and John Mayer and Gary Clark Jr. showed their considerable guitar chops alongside Keith Richards and Ronnie Wood on "Goin' Down."


But the Stones would not be upstaged. While the sold-out crowd roared with each special guest, it was the aging but dynamic foursome that generated the most excitement of the night, as they put new energy into their decades-old catalog of hits, including "It's Only Rock 'N Roll (But I Like It)," ''Start Me Up," ''Brown Sugar," ''Sympathy for the Devil" and more.


The band took a moment to acknowledge the shooting deaths of 20 children and six adults at an elementary school Friday in Newtown, Conn. "We just wanted to send our love and condolences to all the people who lost loved ones in the tragedy in Connecticut," Jagger early on in the concert as the audience applauded. Jagger noted the entire world was feeling the pain of the stunned nation.


But it was the only somber moment in an a frenetic show that showed why the Stones are considered by many to be the greatest rock band, and belied the much-discussed advanced age of the group's lineup (their ages range between 65 and 71).


Jagger himself poked fun at the senior citizen status of the band and their fans; speaking of the pay-per-view crowd at home, he joked: "Some of you have got your grandchildren watching you."


But few acts in their so-called prime would have been able to match the energy the Stones radiated onstage. The group had the crowd on its feet for the entire show as Jagger gyrated across the stage, his voice in top form. Both Wood and Richards dazzled on guitar (Richards got a raucous, sustained ovation as he took over vocals on two songs). And Charlie Watts kept the beat strong on the drums.


Before performing in London together late last month for the first of the concerts, the Stones hadn't performed in concert together since 2007. Going into these shows, there was some speculation that Saturday's concert, held at the Prudential Center, might be their last.


Earlier in the evening, Jagger teased that the concert might signal the end: "This could be the last time; I don't know," he said. But by the end of the evening, it seemed clear that the question was not when the Stones would return, but when.


"This is the last show of our anniversary tour, and we hope to see you all again soon," Jagger said.


Perhaps the night's most special guest was Mick Taylor, the former Stones guitarist who was part of some of their biggest moments from 1969 to 1975, when he left the group. He rejoined his band mates (and the man who replaced him, Wood) onstage for a powerful performance of "Midnight Rambler".


At the concert's end, while other special guests gave their final bows and left the stage, Jagger motioned for Taylor to stay, and the five took their final bow together.


___


Nekesa Mumbi Moody is the AP's Global Entertainment & Lifestyles Editor. Follow her at http://twitter.com/nekesamumbi


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Dr. William F. House, Inventor of Cochlear Implant, Dies





Dr. William F. House, a medical researcher who braved skepticism to invent the cochlear implant, an electronic device considered to be the first to restore a human sense, died on Dec. 7 at his home in Aurora, Ore. He was 89.




The cause was metastatic melanoma, his daughter, Karen House, said.


Dr. House pushed against conventional thinking throughout his career. Over the objections of some, he introduced the surgical microscope to ear surgery. Tackling a form of vertigo that doctors had believed was psychosomatic, he developed a surgical procedure that enabled the first American in space to travel to the moon. Peering at the bones of the inner ear, he found enrapturing beauty.


Even after his ear-implant device had largely been supplanted by more sophisticated, and more expensive, devices, Dr. House remained convinced of his own version’s utility and advocated that it be used to help the world’s poor.


Today, more than 200,000 people in the world have inner-ear implants, a third of them in the United States. A majority of young deaf children receive them, and most people with the implants learn to understand speech with no visual help.


Hearing aids amplify sound to help the hearing-impaired. But many deaf people cannot hear at all because sound cannot be transmitted to their brains, however much it is amplified. This is because the delicate hair cells that line the cochlea, the liquid-filled spiral cavity of the inner ear, are damaged. When healthy, these hairs — more than 15,000 altogether — translate mechanical vibrations produced by sound into electrical signals and deliver them to the auditory nerve.


Dr. House’s cochlear implant electronically translated sound into mechanical vibrations. His initial device, implanted in 1961, was eventually rejected by the body. But after refining its materials, he created a long-lasting version and implanted it in 1969.


More than a decade would pass before the Food and Drug Administration approved the cochlear implant, but when it did, in 1984, Mark Novitch, the agency’s deputy commissioner, said, “For the first time a device can, to a degree, replace an organ of the human senses.”


One of Dr. House’s early implant patients, from an experimental trial, wrote to him in 1981 saying, “I no longer live in a world of soundless movement and voiceless faces.”


But for 27 years, Dr. House had faced stern opposition while he was developing the device. Doctors and scientists said it would not work, or not work very well, calling it a cruel hoax on people desperate to hear. Some said he was motivated by the prospect of financial gain. Some criticized him for experimenting on human subjects. Some advocates for the deaf said the device deprived its users of the dignity of their deafness without fully integrating them into the hearing world.


Even when the American Academy of Ophthalmology and Otolaryngology endorsed implants in 1977, it specifically denounced Dr. House’s version. It recommended more complicated versions, which were then under development and later became the standard.


But his work is broadly viewed as having sped the development of implants and enlarged understanding of the inner ear. Jack Urban, an aerospace engineer, helped develop the surgical microscope as well as mechanical and electronic aspects of the House implant.


Karl White, founding director of the National Center for Hearing Assessment and Management, said in an interview that it would have taken a decade longer to invent the cochlear implant without Dr. House’s contributions. He called him “a giant in the field.”


After embracing the use of the microscope in ear surgery, Dr. House developed procedures — radical for their time — for removing tumors from the back portion of the brain without causing facial paralysis; they cut the death rate from the surgery to less than 1 percent from 40 percent.


He also developed the first surgical treatment for Meniere’s disease, which involves debilitating vertigo and had been viewed as a psychosomatic condition. His procedure cured the astronaut Alan B. Shepard Jr. of the disease, clearing him to command the Apollo 14 mission to the moon in 1971. In 1961, Shepard had become the first American launched into space.


In presenting Dr. House with an award in 1995, the American Academy of Otolaryngology-Head and Neck Surgery Foundation said, “He has developed more new concepts in otology than almost any other single person in history.”


William Fouts House was born in Kansas City, Mo., on Dec. 1, 1923. When he was 3 his family moved to Whittier, Calif., where he grew up on a ranch. He did pre-dental studies at Whittier College and the University of Southern California, and earned a doctorate in dentistry at the University of California, Berkeley. After serving his required two years in the Navy — and filling the requisite 300 cavities a month — he went back to U.S.C. to pursue an interest in oral surgery. He earned his medical degree in 1953. After a residency at Los Angeles County Hospital, he joined the Los Angeles Foundation of Otology, a nonprofit research institution founded by his brother, Howard. Today it is called the House Research Institute.


Many at the time thought ear surgery was a declining field because of the effectiveness of antibiotics in dealing with ear maladies. But Dr. House saw antibiotics as enabling more sophisticated surgery by diminishing the threat of infection.


When his brother returned from West Germany with a surgical microscope, Dr. House saw its potential and adopted it for ear surgery; he is credited with introducing the device to the field. But again there was resistance. As Dr. House wrote in his memoir, “The Struggles of a Medical Innovator: Cochlear Implants and Other Ear Surgeries” (2011), some eye doctors initially criticized his use of a microscope in surgery as reckless and unnecessary for a surgeon with good eyesight.


Dr. House also used the microscope as a research tool. One night a week he would take one to a morgue for use in dissecting ears to gain insights that might lead to new surgical procedures. His initial reaction, he said, was how beautiful the bones seemed; he compared the experience to one’s first view of the Grand Canyon. His wife, the former June Stendhal, a nurse, often helped.


She died in 2008 after 64 years of marriage. In addition to his daughter, Dr. House is survived by a son, David; three grandchildren; and two great-grandchildren.


The implant Dr. House invented used a single channel to deliver information to the hearing system, as opposed to the multiple channels of competing models. The 3M Company, the original licensee of the House implant, sold its rights to another company, the Cochlear Corporation, in 1989. Cochlear later abandoned his design in favor of the multichannel version.


But Dr. House continued to fight for his single-electrode approach, saying it was far cheaper, and offered voluminous material as evidence of its efficacy. He had hoped to resume production of it and make it available to the poor around the world.


Neither the institute nor Dr. House made any money on the implant. He never sought a patent on any of his inventions, he said, because he did not want to restrict other researchers. A nephew, Dr. John House, the current president of the House institute, said his uncle had made the deal to license it to the 3M Company not for profit but simply to get it built by a reputable manufacturer.


Reflecting on his business decisions in his memoir, Dr. House acknowledged, “I might be a little richer today.”


Read More..

Don't impoverish yourself to pay kids' student loans








Dear Liz: I'm in my 50s. My kids have college loan debts that might total more than $200,000. I allowed them to take out loans because I expected to inherit $300,000 to help them pay off the debt. Now that inheritance will not happen.


I have $250,000 saved for retirement. When I'm 58 1/2 years old, I would like to pull that money out and pay some or all of these debts. Or use home equity. I've recently been downsized in employment, but I am looking to increase my income so I can help with their debt. Advice?


Answer: If your goal is to impoverish yourself so your kids will have to take care of you in your old age, by all means proceed with your plan. Otherwise, you need to rethink this.






You've been laid off in the middle of what should be your peak earning years. Older workers often have a tougher time than younger ones finding replacement jobs, even in a better economy than this one. You may not be able to replace your former income, which means you may not be able to add much to the amount you've already saved. You should be conserving your resources, including your home equity, and not squandering it repaying debts that aren't yours.


And "squandering" is the right word. You may be able to avoid paying federal and state tax penalties on withdrawals under certain conditions; distributions made after age 59 1/2 avoid the penalties, as do those made if you're "separated from service" if the job termination occurred in or after the year you turn 55. But you'll still owe income taxes on the withdrawal, and those can be considerable.


Your children are the ones who will benefit from their educations. Those educations should allow them to earn incomes to repay these loans. The amount of debt they've accrued might be excessive — you didn't specify how many kids, or whether this debt is being incurred pursuing undergraduate or graduate degrees. Ultimately, though, they will be in a better position to pay the debt than you are.


If you promised them help you can't deliver, sit down with them now to break the bad news and strategize on how they can finish their educations without incurring substantially more debt.


Your story also should serve as a cautionary tale for anyone counting on an inheritance to pay future bills. Until the money is in your bank account, it's not yours and shouldn't be part of your financial planning.


Refinancing mortgage in divorce may not be wise move


Dear Liz: My soon-to-be ex wants to refinance our mortgage to pay for renovations so we can sell it for more money. He also wants to take out some cash to pay off unsecured loans. (I have $11,000 in credit card debt, and he has over $50,000.) The house recently appraised for $310,000 and we owe $158,000 on it. Is it wise to refinance in this circumstance?


Answer: A cash-out refinance would be a risky maneuver even if you intended to stay married. Renovations rarely boost a home sale price enough to cover their cost. Also, home equity that's used to pay off credit card bills is often wasted, since the borrower never fixes the problem that led to overspending in the first place and simply runs up more debt. Since he would be getting the bulk of the benefit by having more of his debt paid off, you also would need to adjust the rest of your property settlement.


Often, the best and easiest solution in a divorce is to simply sell the house. You certainly wouldn't want to remain on a mortgage with an ex after the divorce was final, if you could possibly avoid it. A good divorce attorney can give you advice about how to proceed from here.


Make saving money automatic


Dear Liz: What's the easiest way to save money? I have the hardest time. I want to save, but I feel that I don't make enough to start saving.


Answer: The easiest way to save is to do it without thinking about it.


That usually means setting up automatic transfers either from your paycheck or from your checking account. If you have to think about putting aside money, you'll probably think of other things to do with that cash. If it's done automatically, you may be surprised at how fast the money piles up.


The second part of this equation is to leave your savings alone. If you're constantly dipping into savings to cover regular expenses, you won't get ahead.


People manage to save even on small incomes because they make it a priority. They "pay themselves first," putting aside money for savings before any other bills are paid. Start with small, regular transfers and increase them as you can.


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