3 Drug Companies Face Fraud & Bribery Charges

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

 

3 Drug Companies Face Fraud & Bribery Charges

 

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

 

 

 

 

DR. MERCOLA'S COMMENT:

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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 " 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.

 

 

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