Testimony Confirms OIG's Ongoing Focus On Vendor Relationships With Physicians

Testimony of the Office of Inspector General's (OIG) Assistant Inspector General for Legal Affairs before the Senate's Special Committee on Aging on February 27, 2008, explained the OIG's views of the risks associated with industry-physician financial relationships. The testimony also describes OIG's recent enforcement actions and outreach efforts to promote compliance as well as its views of ways to mitigate these risks, including increased transparency. The testimony reflects and confirms the OIG's continued focus on physician-industry relationships and demonstrates a need to revise compliance programs to address such relationships.

OIG's Assistant Inspector General for Legal Affairs, Gregory E. Demske, testified before the Senate Committee on Aging at a hearing held on February 27, 2008, about the OIG's views with respect to financial relationships that exist between physicians and the medical device industry. Sen. Herb Kohl, the chair of the committee, and Sen. Charles Grassley sponsored the Physician Payments Sunshine Act, which would create a national database of payments and gifts to physicians. The hearing also included testimony from a clinical professor who heads the Association for Ethics in Spine Surgery, three representatives from device manufacturers, and a representative from Advamed, a trade organization for medical device manufacturers.

Although OIG's testimony focused on the medical device sector, it is clear that much of the OIG's observations and recommendations also are applicable to other health care sectors with physician interactions such as pharmaceutical manufacturers and suppliers.

Among the OIG's concerns with such relationships are the potential for industry-induced bias resulting in:

Risks to patients (treatment decisions that are not based solely on patient-care interests)

Risks to health care programs (increased costs and unfair competition)

Risks to scientific research (corrupting research independence and the standards of scientific integrity)

The testimony acknowledged that industry-physician relationships can, in many circumstances, advance medical science and benefit patients. Additionally, the testimony noted that device companies can legitimately compensate physicians for their actual time and intellectual contributions to product innovations and training in the appropriate use of devices.

The OIG is concerned by the significant risk that such payments may improperly influence medical decision-making...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT