Good old-fashioned fraud, reimbursement cuts--those are but some of the major factors that have doomed medical device companies and sent them on the road to default, according to a new report out of Standard & Poor's.

Brian Buntz and Chris Newmarker

It is rare for medical device companies to default, although the number of defaults in the sector has risen in recent years. Over the past 30 years, the most common causes of default were fraud and accounting problems, according to a Standard & Poor's (S&P) report titled "Factors Leading to Default for Medical Device Companies."

S&P studied 15 major medical device company bankruptcy filings over the past 30 years. There were six major causes behind default.

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