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Senior Citizen Politics

Aging Committee Chair’s National Registry of Drug Company Gifts to Docs Creates a Storm

Proposal by Senators Kohl, McCaskill catch media’s attention

July 2, 2007 – It was not a hearing that initially grabbed the headlines but the repercussions continue to grow. Senate Special Committee on Aging Chairman Herb Kohl (D-WI) held a hearing last week to examine the pharmaceutical industry’s costly practice of providing payments and gifts to doctors, and to consider what kind of influence this wields over some of the nation’s physicians. He announced he will propose a national registry to require disclosure of payments and gifts, and this caught the media’s attention. Committee member Sen. Claire McCaskill (D-Mo.) said she will join with Kohl.

(See KaiserNework.org reports below on media reactions.)

 

Related Stories

 
 

Senate Aging Committee Focuses on $19 Billion Drug Companies Give Physicians

‘Paid to Prescribe? Exploring the Relationship Between Doctors and the Drug Industry’ is hearing title

June 26, 2007 - How much are the prescribing decisions by physicians influenced by the reported $19 billion in money and gifts given to them each year by the pharmaceutical industry? That is what Senate Special Committee on Aging Chairman Herb Kohl (D-WI) hopes to find out in a committee hearing on Wednesday. Read more...


Read more on Politics for Senior Citizens

 

It is estimated these companies spend $19 billion annually on doctors in the form of lecture honoraria, conference registration fees, research grants, trips, meals, drug samples, and other freebies.

Although this has often been cited as a problem, a study published in the New England Journal of Medicine earlier this year reported that 94 percent of physicians have received such gifts and payments from drug companies. Many were surprised.

“The financial ties between doctors and drug companies are only deepening,” said Chairman Kohl.  “These gifts and payments can compromise physicians’ medical judgment by putting their financial interest ahead of the welfare of their patients.”

“While there are voluntary guidelines already in place, it is clear they are not being followed.  I intend to vigorously pursue stronger adherence to these guidelines, as well as propose a national registry to require disclosure of payments and gifts. 

“We need transparency, at the minimum and at the outset.  Many of these gifts are not illegal, but we need them disclosed.  These interactions involving things of value between the pharmaceutical industry and doctors must be made public.”

The pharmaceutical industry is considered one of the most profitable industries in the world, returning more than 15 percent on investments.  At the same time, Americans pay the highest drug prices in the world, forcing some employers to drop health coverage for employees, squeezing the budgets of state and federal government, and ultimately harming senior citizens by putting drug costs out of their reach, says a nrew release from Sen. Kohl’s office.

Speakers at the hearing included:

 Dr. Jerome Kassirer, a professor at Tufts University School of Medicine and author of On the Take:  How Medicine's Complicity with Big Business Can Endanger Your Health, provided an overview during his testimony of the various financial incentives pharmaceutical companies use to influence the prescribing patterns of physicians. 

Dr. Greg Rosenthal, a retinal eye specialist from Toledo, Ohio, reported to the committee on the influence-peddling he has witnessed within his specialty, and how the increasing prevalence of these conflicts of interest led him to become a founding member of Physicians for Clinical Responsibility.

Dr. Peter Lurie, Deputy Director of Public Citizen’s Health Research Group, offered the results of a study he coauthored for the Journal of the American Medical Association examining state disclosure laws of drug industry payments to physicians. Lurie also gave his opinion on the creation of a national registry for the disclosure of all gifts and payments from the drug industry to doctors. 

Maine State Rep. Sharon Treat, Executive Director of the National Legislative Association on Prescription Drug Prices, discussed efforts made by states to limit the influence of pharmaceutical companies.  In addition, Treat discussed the American Medical Association’s (AMA) practice of collecting and selling information about which drugs doctors are prescribing to their patients.

Representatives from both the AMA and Pharmaceutical Research and Manufacturers of America (PhRMA), the drug industry’s trade organization, offered testimony during the second panel about their self-imposed voluntary guidelines on both accepting and giving gifts, and whether they believe there has been a positive change in this practice since the guidelines were written in 2002. 

 Dr. Robert Sade, Chair of AMA’s Council on Ethical and Judicial Affairs, testified on behalf of the AMA, while Marjorie Powell, Senior Assistant General Counsel, testified on behalf of PhRMA.

Chairman Kohl declared in his opening statement that he will continue oversight of the relationship between doctors and the drug industry. 

>> For links to the testimony and a video of the hearing, click here.

KaiserNetwork.org

 

Daily Reports

KaiserNetwork.org

 

Pharmaceutical Industry Should Not Oppose Registry of Gifts to Physicians, Editorial States

"It's no surprise that the pharmaceutical industry is appalled at proposals to set up a national registry of its gifts and payments to doctors" because access to such "information might lead patients to suspect that their doctors are choosing costly medicines out of gratitude to the manufacturers rather than for the best medical or economic interests of their patients," a New York Times editorial states.

Voluntary guidelines adopted by medical societies and the Pharmaceutical Research and Manufacturers of America "are supposed to limit payments and gifts to modest proportions," but "they typically still allow doctors to be paid as consultants or speakers, leaving plenty of room to lavish favors upon them," according to the editorial.

Senate Special Committee on Aging Chair Herb Kohl (D-Wis.) and Sen. Claire McCaskill (D-Mo.) last week announced that they "would push for a national registry that would force drug and medical device companies to report their gifts and payments to physicians," the editorial states, adding that their proposal "ought to require electronic reporting of all payments to individual doctors for posting in a registry that could be easily searched from home computers." The editorial concludes, "If there is nothing wrong with such payments, neither the doctors nor the industry should object to public disclosure" (New York Times, 7/2).

Letters

The Times on Monday also published two letters to the editor written in response to a June 27 article on a study conducted by the state of Vermont that found psychiatrists in the state receive more payments from pharmaceutical companies than other medical specialists. Summaries appear below.

  ● Paul Packman: "The payments you describe are not gifts but payments for work: consultations, teaching, educational roundtables and so on," Packman, former president of the American Academy of Clinical Psychiatrists, writes in a letter to the editor of the Times. "These payments do not differ from those received by any other type of consultant or educators," Packman writes, adding, "It is not surprising that the content of these educational endeavors focuses on the newer, more efficacious medications with fewer side effects than drugs that have been on the market for 37 years" (Packman, New York Times, 7/2).

  ● Carolyn Robinowitz/Robert Pierattini: "We do take exception to your assessment that a 'pattern has emerged' in which 'psychiatrists earn more money from drug makers than doctors in any other specialty,'" Robinowitz, president of the American Psychiatric Association, and Pierattini, president of the Vermont Psychiatric Association, write in a letter to the editor of the Times.

"Vermont's report wasn't about all psychiatrists; it made claims about only 11, and they were anything but representative of all of the state's psychiatrists," Robinowitz and Pierattini write. They add that APA and VPA "are working with state policymakers to strengthen state tracking laws, for only then can a proper assessment be made of such payments' influence" (Robinowitz/Pierattini, New York Times, 7/2).


Editor’s Note: On June 27, the day of the hearing, KaiserNetwork.org looked at what other newspapers were saying about the pharmaceutical company gifts to physicians.

Newspapers Examine Pharmaceutical Companies' Influence on Physicians

Summaries of the articles appear below.

Gifts: Psychiatrists in Vermont earn more money from pharmaceutical companies than other medical specialists, according to a report released on Tuesday by the state, the New York Times reports. Vermont identified the top 100 paid specialists in the state, finding 11 psychiatrists and five endocrinologists in the group.

The state found that payments to psychiatrists more than doubled from an average of $20,835 in 2005 to $45,692 in 2006. Endocrinologists earned the second highest amount from drug companies at an average of $33,730 in 2006. Researchers also found that psychiatrists who earn the most from drug companies prescribe atypical antipsychotic drugs off-label to children most often.

A similar pattern was found in Minnesota, where psychiatrists earn more from drug companies than other physicians and prescribe more antipsychotic drugs to children. The findings "have helped to fuel a growing interest among state and federal officials to document and restrict payments to doctors from drug makers," according to the Times (Harris, New York Times, 6/27).

Continuing medical education: Pharmaceutical companies in 2005 paid for about half of the $2.25 billion annual cost of continuing medical education courses that physicians must take to maintain their medical licenses, the Washington Post reports. Data show that drug and medical device makers pay for about two-thirds of the cost of courses sponsored by prestigious medical schools.

Critics say that the rise of pharmaceutical-sponsored CME courses "raises health care costs, skews doctors' treatment decisions and allows the industry to skirt laws against advertising 'off-label' uses for its products," according to the Post.

Senate Special Committee on Aging Chair Herb Kohl (D-Wis.) said, "It appears that everyone profits from this pervasive system of gifts and payments, except the consumer."

However, Scott Lassman, senior assistant general counsel for the Pharmaceutical Research and Manufacturers of America, said that pharmaceutical sponsorship of CME courses allows physicians to learn about the latest medical and scientific research. He added that the courses "are viewed as running independently of the pharmaceutical company. The company may be providing the funding for it, but they are not directing the content." The Senate committee will meet Wednesday to discuss the issue (Williamson/Lee, Washington Post, 6/27).

 

"Reprinted with permission from kaisernetwork.org You can view the entire Kaiser Daily Health Policy Report, search the archives, and sign up for email delivery at www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation. © 2006 Advisory Board Company and Kaiser Family Foundation. All rights reserved.”

 

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