Just like any other industry, medical device and pharmaceutical companies are required to follow strict rules and regulations imposed by the government. Unfortunately there will always be rule breakers- intentionally or unintentionally. That’s why a recent article grabbed our attention titled, “The Top 5 Corruption Risks for Pharmaceutical and Medical Device Companies”.
To protect against corruption, the US Justice Department passed the Foreign Corruption Practices Act of 1977 (FCPA). The FCPA addresses accounting transparency requirements, and also covers the issue of bribery. Where is our industry most at risk?
The article points out that “Given that basic assumption, pharmaceutical and medical device companies face a number of significant risks, all of which are exacerbated by industry practices,” below are the top five areas where companies are most at risk for corruption:
- State-Owned Enterprises
- Third Party Agents
- Sponsorship of Medical Conferences
- Foreign Clinical Trials
- “Anything Value”
Check out the elaboration the author makes to each risk point. Do you agree?
Knowing this information can help companies to set-up extra measures to ensure their company is not at risk for these perils. As the article states, “Pharmaceutical and medical device companies know how to comply with anti-corruption laws. They are experienced in the world of compliance given the significant involvement of the U.S. and foreign governments in regulation of the healthcare industry.” However, taking extra steps to lower a company’s risk cannot happen soon enough- especially with Congress passing more legislation and higher fines for lawbreakers in our industry.
What are your thoughts on these top five corruption points? Do you think this is something companies struggle with? Share your insight below.
Photo Credit: Truthout.org