Concerns Raised about Fees Paid by Device, Pharma Companies to MDs
The United States Senate’s Special Committee on Aging is investigating the practice of gifting, including payments, to clinicians by device manufacturers and pharmaceutical companies. The Committee is additionally spearheading new legislation which will require companies to disclose such payments, according to an article published by Reuters.
Testimony from a Health and Human Services Department watchdog noted that the current laws to regulate these fees, gifts, and other perks are not sufficient to ensure adequate oversight and potential conflict of interest. The existing law mandates that the government must prove willful conduct in these cases, which is often rather difficult. Moreover, the testimony further indicated that the statute cannot adequately address the influence of money across the healthcare industry.
Last year, there were five settlements following investigation by the U.S. Department of Justice into how surgeons determined the sort of implants to use in surgical cases. Companies investigated included Smith & Nephew, Biomet, Zimmer Holdings, DuPuy Orthopaedics, and Stryker Corporation. The first four, save Stryker, paid out a total $311 million in settlement. Stryker, alternatively, agreed to modify practices.
The Senate Committee suggests that the existing guidelines, which allow for voluntary reporting are not sufficient to address the influence wielded. Data indicates that manufacturers of knee and hip implants alone made payments of at least $222 million.
Concerns about similar practices also apply to pharmaceutical companies and the legislation proposed would apply to them as well. The pending bill will require that all drug and device makers fully disclose all payments to clinicians. In addition, they must complete reports for the federal government on an annual basis which will also be posted on the internet.
March 18, 2008 Related topics: Legal & legislative, Ethics & Scandals