3 Drug Companies Face Fraud & Bribery Charges

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Misty

http://www..com

 

3 Drug Companies Face Fraud & Bribery Charges

 

http://www.mercola.com/2003/feb/26/drug_companies.htm

 

Three major drug companies have been accused of illegally providing

financial incentives to doctors and pharmacists to favor their

products, a practice that costs consumers tens of millions a year.

 

The companies, Pharmacia, GlaxoSmithKline and Aventis, are accused of

" consumer fraud, commercial bribery and making false statements

concerning inflated wholesale prices to government-operated

subsidized health plans. "

 

Attorneys said the inflated drug prices cost consumers and the state

government $50 million to $100 million a year.

 

The companies are accused of reporting inflated drug prices to

governments, and charging lower prices to health care providers. The

difference between the two amounts, after the government reimburses

the higher costs, can be taken by the health care providers, enticing

 

them to choose those drugs over other options.

 

The companies dispute the claim.

 

A representative from GlaxoSmithKline said the company does not

control the price paid by doctors and pharmacies and the

reimbursement rates from the government and that the company does not

see the price differences as a way to entice doctors to favor their

drugs.

 

Associated Press February 13, 2003

 

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DR. MERCOLA'S COMMENT:

 

No major surprise here except to find out that some state governments

 

are starting to hold the drug companies responsible for the illegal

methods that drain the taxpayers of their hard earned money.

 

As I said over three years ago:

 

It is unfortunate that most physicians have no clue that the drug

companies are spending (on average) $10,000 to influence their

behavior.

They, of course, do not receive a check, but the perks are quite

significant.

 

They also don't realize that they actually lose that much income and

more if they factor the time they lose by sitting with the drug

company reps and going to their " free " fidyl meals and lectures. They

are also clueless on what a fiduciary responsibility is, that they

need to carefully analyze the costs involved in recommending

expensive drugs.

 

Clearly drugs are sometimes appropriate and can save someone's life.

But most of the time they are unnecessary, cause harm and cause the

patient to divert much of their hard earned income to the drug

companies that further perpetuates this indirect physician subsidy.

One thing these drug companies are not is stupid. There is no way

they would spend $10 billion a year to do this unless they received a

significant return on their investment.