Cited by 16Pharmaceutical industry and healthcarePharmaceutical Economics and PolicyHealthcare Policy and Management

Industry Payments to Physicians Are Kickbacks. How Should Stakeholders Respond?

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Mitchell, Aaron, Sarpatwari, Ameet, Bach, Peter B.·2022·Journal of Health Politics, Policy and Law

Abstract

Payments from the pharmaceutical industry to US physicians are common. In determining which payments rise to the level of an illegal kickback under the Anti-Kickback Statute (AKS), the Department of Health and Human Services' Office of Inspector General (OIG) has stated in nonbinding guidance that influencing or “swaying” physician prescribing is key. OIG has highlighted as a compliance standard the Pharmaceutical Research and Manufacturers of America Code on Interactions with Health Professions, which stipulates that permissible payments are those that do not interfere with prescribing. However, recent evidence has shown that most payments influence physician prescribing, driving higher prescription drug costs by increasing use of brand-name and low-value drugs. This evidence implies that many payments that are currently commonplace could be subject to prosecution under AKS. Given that these payments increase costs to patients and the health care system, there is a public interest in curtailing them. This article proposes a range of actions available to stakeholders—including industry, providers, regulators, and payers—to mitigate the cost-increasing effect of industry payments to physicians.

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  1. Institute of Medicine (US) Committee on Conflict of Interest in Medical Research, Education, and Practice. 2009. Conflict of Interest in Medical Research, Education, and Practice. Edited by Lo Bernard and Field Marilyn J.. The National Academies Collection: Reports Funded by National Institutes of Health. Washington (DC): National Academies Press (US). http://www.ncbi.nlm.nih.gov/books/NBK22942/. 20662118

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Authors
Mitchell, A., Sarpatwari, A., & Bach, P. B.
Affiliations
  • Memorial Sloan Kettering Cancer Center (US)
  • Harvard University (US)
  • Delfi Diagnostics
Corresponding author
Mitchell, Aaron
Venue
Journal of Health Politics, Policy and Law
Published
2022-07-14
Volume
47
Issue
6
Pages
815-833
ISSN
  • 0361-6878 (ISSN-L)
  • 1527-1927
OpenAlex
W4286563759
Cited by
16
References
43
Citations by year
2026: 5 · 2025: 4 · 2024: 3 · 2023: 4
FWCI
2.51
Type
journal article
Language
en
Open access
Locations
  • Journal of Health Politics Policy and Law (publishedVersion)
  • PubMed (publishedVersion)
  • PubMed Central (acceptedVersion)
Funders
National Cancer Institute (P30CA008748)
Topics
  • Life Sciences › Pharmacology, Toxicology and Pharmaceutics › Pharmacology › Pharmaceutical industry and healthcare
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Pharmaceutical Economics and Policy
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Healthcare Policy and Management
Keywords
kickbacks, anti-kickback statute, prescription drug costs, low-value prescribing, health care cost containment, industry compliance
MeSH terms
Drug Industry, Humans, Physicians, United States, Prescription Drugs

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