Skip to main content

Medical Industry Conflits

How Much Are Medical Device Companies Paying Your Doctor?

When a doctor prescribes a new drug or medical device, most patients presume that the recommendation is based on their best interests. However, the data collected by the Centers for Medicare and Medicaid Services (CMS) about the financial ties between physicians and the medical industry suggests that this is not always the case.


Medical Industry Conflits
Thanks to technology, consumers can search the Open Payments database to find information about whether and how much their doctors are getting paid by medical device companies. For many patients, what they find can be alarming. In 2016, drug and medical device companies made a total of $8.18 billion in payments to physicians and teaching hospitals. Also concerning, payments from pharmaceutical companies and device makers increased by $90 million from 2015 to 2016.

What Is the Open Payments Database?

Open Payments is a federal program that collects information about the payments drug and device companies make to physicians and teaching hospitals for things like travel, entertainment, research, gifts, speaking fees, and meals. It also provides information about the ownership interests that physicians or their immediate family members have in these companies.

According to CMS data for 2016, the payments were made by 1,481 companies to 631,000 doctors and 1,146 teaching hospitals. They include $2.8 billion in general payments and $4.36 billion in research payments. In addition, there was $1 billion in ownership and investment interests held by doctors and teaching hospitals in the drug and device companies.

How Does Open Payments Work?

Under the Physician Payment Sunshine Act,drug and medical device makers must disclose any transfer of value to a physician that exceeds $10. Companies must also report whether a physician or his or her family members have an ownership stake in the company outside of publicly traded stock.

Every year, manufacturers and applicable group purchasing organizations (GPOs) must report the following information to CMS:

  • Payments and other transfers of value from manufacturers of covered drugs, devices, biologicals, or medical supplies to physicians and teaching hospitals.
  • Payments and other transfers of value from applicable GPOs to physician owners/ investors.
  • Ownerships or investments held by physicians or their immediate family in manufacturers and GPOs.

CMS then collects, aggregates, and publishes the data on its public website. Reports are published every year (usually in June) and include a full 12 months of payment data. Users can search by physician, hospital, or company making the payments.

First launched in 2014, the Open Payments database also continues to evolve and become more user friendly. Last year, CMS updated its website to allow users to compare specific physicians to a national average and peers within their specialty. Additionally, consumers can view payments received by physicians in each state.

The Open Payments database is also useful to consumer protection and advocacy groups, as well as media organizations. Last year, ProPublica published a study analyzing all payments received between August 2013 to December 2015. It found that California led the nation in total payments provided by pharmaceutical companies and medical device manufacturers to doctors, with $1.44 billion in payments.

For each state, ProRepublica also identified the highest-earning doctors and teaching hospitals. A San Diego doctor, Dr. Sanjiv Narayan, actually led the country. He and his wife received $54.8 million when Abbott Laboratories bought their medical device company in December 2014.

Read more:

Head injury attorneys in hampton
Atlanta spinal injury lawyer
Sexual assault victim lawyer


With regard to California teaching hospitals, the UCSD Medical Center took in $2.45 million in payments, ranking number seven in the state.

Conflict of Interest Concerns

Studies have confirmed that financial incentives and other perks can influence the drugs and medical devices that physicians recommend. For instance, one recent study found that doctors are more likely to prescribe cheaper, generic medications when hospitals implement policies that limit the access given to pharmaceutical representatives. Conversely, researchers have also found that that just one free meal from a pharmaceutical company can influence a doctor's prescribing habits.

While the Open Payments program does not identify which payments may result in conflicts of interest, it does provide valuable insight into the extensive financial relationships between doctors and the health care industry. For patients, the database provides the information necessary to start a dialogue with their health care providers about why they accepted certain payments and how it may affect their medical device or medication recommendations.

If you or a loved one has been harmed due to the actions or irresponsibility of a medical professional, the Law Offices of Robert Vaage is ready to assist. Our award-winning San Diego personal injury attorney has recovered millions of dollars for injury victims, including those who have suffered harm due to medical malpractice.

Read More:

Labels:
Location: United States

Comments

Post a Comment

Popular posts from this blog

Who is the best trucking accident attorney in Atlanta?

Semi-Truck Accident Lawyer The consequences of a collision between a commercial truck and a passenger vehicle are often devastating. Serious accident injuries and fatalities are common in Georgia. Victims are often those in the passenger vehicle due to the sheer size difference. In many of these cases, truck accident victims can seek justice with the help of our law firm. “ The Truck Accident Attorneys ” servicing Georgia, South Carolina, Florida, Alabama, Tennessee and New York, focusing specifically on truck accident injury law. Over the years we’ve achieved successful verdicts for our clients through our understandings of the nuances specific to truck accident litigation. Truck Accident Lawyer in Atlanta ; When auto accidents occur, there is typically an exchange of contact information and insurance between the parties involved. Depending on the details of the case, there may be more than just the drivers who are held responsible for being at fault. Although truck drivers are direct
8 comments
Read more

Smyrna Truck Accident Attorney

Hire a Truck Accident Lawyer in Smyrna After a truck accident in Smyrna, a victim has many questions regarding financial recovery, liability, and other aspects of handling a personal injury claim.  Many personal injury lawyers charge a fee based upon whether you receive a monetary award. This is called a contingency fee. As long as you have a solid case, most truck accident attorneys will agree to a contingency fee. The typical amount ranges from   25 percent to 40 percent of the settlement amount . The greater severity of your injuries and the stronger your case is, the more willing most lawyers will be to negotiate the contingency fee. Truck Accident Settlement Amount How Long Do I Have to File a Lawsuit After a Truck Accident? Under Georgia’s statute of limitations, there is a certain time limit for bringing forward a legal action after a truck accident. In Georgia, most truck wrecks follow these deadlines: 2 years after the collision to file a claim for injury; and 4 years from the
10 comments
Read more

How to File a Wrongful Death Claim?

Filing a Wrongful Death Claim A wrongful death claim is a civil court action in which the amount of damages awarded to the surviving members of a family for the wrongful or negligent death of a loved one is determined. If your loved one has died due to someone else’s reckless, negligent, and deliberate behavior, you are entitled to compensation from their wrongful death if their death impacts you and your family’s well being, both emotionally and financially. For a successful wrongful death suit, proof must be established that a loved one’s death was caused by another person’s action or inaction, and that surviving family members are suffering damages because of it. Every state has statutes for wrongful death, which may differ from state to state, but all of them require that a personal representative for the deceased’s estate be the one to file.  A lawsuit can be filed for the following situations: medical malpractice resulting in death, car or plane accident, hazardous
3 comments
Read more