While most consumers don’t really believe that the drug company gift of a product worth a dollar or two would seriously sway a physician’s prescribing practices, they may not know that their physician is actually receiving large sums of money from drug companies. Some physicians have actually received hundreds of thousands of dollars from pharmaceutical companies over the years without disclosing this fact to patients. But that will change as new provisions of the Affordable Care Act go into effect in 2013 and 2014.
The Facts About Drug Companies Paying Physicians
A study by PharmaShine for the Financial Times found that in 2012, a dozen leading pharmaceutical companies paid a total of more than $1 billion to US doctors. The top three known drug companies paying physicians were:
- Merck, $226 million
- Eli Lilly, $219 million
- Pfizer, $162 million
Several major drug manufacturers — including Amgen, Sanofi, Bayer and Roche — did not release information on their payments to physicians in 2012. Doctors specializing in psychiatry and central nervous system disorders receive more money from drug manufacturers than other types of doctors, and it is estimated that around 500,000 doctors received payments from drug companies in 2012.
Criticism of the Practice
Most people don’t think doctors should take payments from drug companies for promoting their products, according to a 2010 survey by Consumer Reports. Seventy percent said that doctors should tell patients about these payments when they prescribe drugs from a company that has paid them. More than one-third of consumers surveyed worried doctors would be biased by drug company payments to prescribe more expensive drugs more often than equally-effective, cheaper alternatives.
These criticisms are not unfounded. Ista Pharmaceuticals, a unit of Bausch & Lomb, pleaded guilty in May 2013 to using kickbacks and improper marketing to increase sales of a drug used to treat eye pain after cataract surgery. Ista agreed to pay $33.5 million to settle criminal and civil liability related to the case. Claims against Ista were filed under the False Claims Act by a sales representative-turned-whistleblower. Bausch & Lomb plans to shut down Ista by the end of the year.
What You as a Healthcare Consumer Should Know
ProPublica has put together a database of physicians who have received money from drug companies that you can use to search for your physician or healthcare facility. However, ProPublica acknowledges that the database is incomplete and reminds consumers that many doctors have the same names. The Affordable Care Act has a “sunshine” provision requiring pharmaceutical companies to disclose payments to doctors, but this database won’t be available until September 2014.
As with most healthcare and consumer issues, knowledge is power. Knowing whether your physician accepts payments from drug companies can help you make more informed health care choices. Search the databases and don’t be afraid to ask questions, particularly if your physician switches you to a more expensive medication for no apparent reason. You should also know that many top universities have banned or limited teaching physicians from accepting pharmaceutical company payments, including smaller incentives like gift baskets and meals.
The healthcare industry is changing to be more consumer-centric as people become better informed about their bodies and their health. No longer do most patients blindly accept what their doctors tell them. They also want their doctors to be more accountable and transparent, and the new “sunshine” database under the ACA will be a start. Many consumers are taking a more active role in their personal healthcare, working with online facilitators like eDrugstore.com to make more active choices in healthcare while protecting their privacy. eDrugstore.com urges consumers to learn about their physicians, and not be afraid to ask questions if issues of physician influence by drug companies arise.
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