Medtronic says starting next year it will voluntarily report consulting fees, royalties and other payments it makes to physicians.

The debate over physician payments has been intensifying in recent years. Medical device companies say collaboration with doctors is necessary for developing new products that work, but critics say the payments represent a serious conflict of interest and can compromise patient care.

“Relationships between industry and doctors are essential to innovation, education and training in our industry,” CEO Bill Hawkins said in the company's press release. “Through greater transparency about the nature of these relationships, we will help people better understand how important they are to developing life-saving and enhancing products for patients who need them."

Medtronic will begin capturing payment data for all of its businesses on Jan. 1, 2010, and release the information in an annual public report, the first of which will be released in March 2011.

The report will disclose payments to U.S. physicians who receive payments of $5,000 or more per year. A third-party will audit the reports for accuracy, Medtronic said.

The payments are made for services such as education and training, clinical-trial design and administration, and product design and safety.