Feds Warn Drugmakers: Gifts to Doctors May be Illegal
By Julie Appleby, USA TODAY
The Bush administration told doctors Tuesday essentially: Buy your
own golf balls, concert tickets and vacations because drugmakers who offer such
incentives risk running afoul of the law.
In a draft meant to offer guidance to the
industry, the Office of the Inspector General took aim at some common practices
and said they could lead to civil or criminal charges.
Suspect activities include:
- Paying doctors to act as consultants or researchers in
marketing efforts.
- Paying
pharmacies or doctors to switch patients from one drug to a competitor.
- Providing scholarships, grants for research or other
gifts with more than nominal value to doctors.
The guidance comes after years of concern about
some drug industry marketing practices. Critics say such tactics influence
doctors to prescribe certain drugs and lead to higher costs for consumers. The draft
lays out for the first time in one document what the government expects.
The draft — now up for 60 days of public comment
— says some nominal-cost gifts are OK but does not give specifics. Instead, it
says a voluntary ethics code adopted this summer by the Pharmaceutical Research
and Manufacturers of America should be considered a "minimum
standard."
That code says sales reps can buy doctors meals
on occasion but only in conjunction with medical education. Golf balls or bags
emblazoned with drug company logos are not allowed. Neither are tickets to
entertainment events, cash payments or other incentives given for prescribing
products.
The draft guidance also says drug companies can
face charges for reporting average wholesale prices that differ substantially
from what is actually charged — and touting those prices in marketing.
That's because the government uses those prices
on the few drugs covered by Medicare. If the drugs are sold for less, doctors
can bill for the higher amount and keep the difference. It's a tactic
drugmakers use to lure doctors to their products, costing taxpayers $1
billion annually, the government estimates
.
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