Erectile dysfunction device company lays off 30 local employees

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A Martinez business specializing in the treatment of erectile dysfunction has laid off about 30 employees.

Pos-T-Vac Medical, located at 4811 Technology Drive, reduced its sales and sales support on June 14. The company also laid off 35 workers in the insurance processing department of its home office in Dodge City, Kan., said Pos-T-Vac CEO Ed Stewart.

Stewart said the cutbacks were necessary because insurance companies have started to limit reimbursements to the company, which produces vacuum therapy devices.

“It was a distressing deal,” he said. “We hated it.”

The Martinez office will retain about 80 employees, Stewart said.

The company operated locally as Stamen Medical Systems until October 2010, when it was acquired by Pos-T-Vac and labeled under the umbrella name, UroMatrix Medical Systems. The former owner of Stamen Medical, Joseph Testino, was accused of Medicare fraud and other crimes by the U.S. Department of Health and Human Services in August 2009.

The Food and Drug Administration also issued a warning letter to UroMatrix in 2011 after an investigation of the firm revealed that certain devices were misbranded and not in conformity with the “current good manufacturing practice,” according to a letter posted on the FDA’s Web site.

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woodymeister
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woodymeister 06/26/13 - 09:16 am
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Bummer

Sounds like these guys have been operating in a vacuum......

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