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Leaders Tweak Healthcare Policy; Limits Placed On Drug Firm Gifts

by Joan Trombetti, Writer | August 13, 2008
Massachusetts Governor
Deval Patrick signed
law limited gifts
to doctors
Massachusetts Governor Deval Patrick signed into law one of the nation's strictest limits on gifts given to medical professionals by drug salespeople, the most contentious measure contained in a broad package intended to improve healthcare safety and curb skyrocketing costs. The law, based on a plan pushed by Senate President Therese Murray, seeks to increase the number of primary-care doctors.

Critics of the pharmaceutical industry had hoped to ban gift-giving altogether, arguing that the drug company largesse interferes with doctors' judgment in deciding which drugs to prescribe. But the bill that the Legislature sent the governor bans only certain types of gifts such as sports tickets and free travel, and requires that pharmaceutical and medical device-making firms publicly disclose gifts worth more than $50.

The changes come amid intense focus on the cost and quality of healthcare, which consumes one in every six dollars spent in Massachusetts. Two years ago, landmark legislation required almost everyone in the Commonwealth to have insurance. But the law has been so successful -- prompting an estimated 345,000 people statewide to obtain insurance -- that it has been far more expensive than expected, forcing Patrick to sign a bill raising more than $100 million in state funds and fees on private companies to help foot the bill.

Among other provisions, the law also establishes an institute to award grants to doctors and hospitals seeking to increase their use of computer technology. Electronic medical records systems typically cost $30,000 or more, which has slowed the healthcare industry's adoption of technology that most people agree improves both safety and efficiency.

Medical Device Angle

The Advanced Medical Technology Association (AdvaMed) had urged Patrick to veto the law for impeding "important interactions with providers and could drive this critical research and development out of state," according to Stephen J. Ubl, president and CEO of AdvaMed. Ubl argued that the close relationship is needed between manufacturer and researcher in medical device development.

"Unlike other segments of the health care sector, medical technology is often developed and refined based on input from physicians who have direct and constant feedback from their patients. Training by manufacturers to providers is often critical to the safe use of complex technology," said Ubl.

Drugs and devices should have separate codes of conduct for marketing, Ubl said, noting industry codes of conduct already in place. He added that disclosure laws need to protect intellectual property.

For more information on the AdvaMed Code, please visit: http://www.advamed.org/.