physician payment sunshine act

In the first part of our Physician Payment Sunshine Act blog series, the experienced pharmaceutical litigation lawyers at Robinson Calcagnie Robinson Shapiro Davis, Inc. discussed existing disclosure laws of several jurisdictions. The disclosure of high-cost gifts was one of the stipulations of these laws, but there are also states which have established laws banning certain gifts from medical device and pharmaceutical manufacturers.

Vermont, Minnesota and Massachusetts outlawed certain gifts outright while other states, such as Nevada, Connecticut and California, and the District of Columbia, require device and drug companies to comply with the “Code on Interactions with Health Care Professionals,” written in by the Pharmaceutical Research and Manufacturers of America (PhRMA). In Colorado, certain gifts were banned for physicians affiliated with state university hospitals.

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The Patient Protection and Affordable Care Act of 2010 includes, among its provisions, the Physician Payment Sunshine Act (PPSA), which generally requires that pharmaceutical companies disclose payments to physicians for the marketing of their products. It is the first Congressional effort in the regulation of disclosure-related pharmaceutical marketing. The PPSA took effect in January 2012, but, as a federal law, does have an effect on any existing state regulations of drug marketing practices.

In this five-part blog series, we will identify particular state regulations in place before the Sunshine Act and then discuss the ultimate effect the federal law has on these state regulations.

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For years, the pharmaceutical industry has targeted physicians and teaching hospitals to help them market their products. Drug companies provide free samples of their product for physician’s to use and offer lucrative opportunities for those who promote their drug, including gifts, dining and entertainment, lecturing opportunities in resort destinations and other forms of payment. This relationship helps the pharmaceutical company and the physician but not necessarily the patient. A physician who is being paid to promote a product may not be objective when determining the most effective medication for a patient.

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