SOURCE: Cutting Edge Information

November 02, 2007 07:17 ET

DOJ Requires Disclosure of Physician Payments; New Study Provides Fair-Market Value Benchmarks

RESEARCH TRIANGLE PARK, NC--(Marketwire - November 2, 2007) - Five prominent orthopedic device manufacturers recently disclosed payments to physicians and hospital groups on their corporate websites. The Department of Justice required these disclosures as part of a September agreement between the agency and the device manufacturers.

Payments to physicians who consult with medical device and pharmaceutical companies have come under intense scrutiny in recent years. The DOJ's involvement is just the latest example of government initiatives to curb bribes and kickbacks from drug and device manufacturers in exchange for physicians and hospitals using their products. More than two dozen states have introduced legislation pertaining to payment disclosures for physicians' activities and Sen. Grassley (R-Iowa) is championing a bill at the federal level requiring similar disclosures.

In an effort to respond to the increased scrutiny, pharmaceutical and medical device manufacturers have struggled to determine fair-market value for physicians' consulting and advisory services. A recent study from business intelligence firm Cutting Edge Information reveals that most companies rely on fair-market value benchmarks to remain compliant with current regulations.

"Thought Leader Compensation: Establishing Fair-Market Value Procedures," available at http://www.ThoughtLeaderCompensation.com, is a detailed study designed to help pharmaceutical and medical device manufacturers remain compliant, as well as develop fee schedules for physicians' consulting and advisory activities. The study provides fair-market value benchmarks of hourly rates, as well as additional fees for services, such as:

--  Delivering a promotional or scientific speech
--  Leading, moderating or participating in an advisory panel
--  Writing a medical publication
    

"Compliance is an understandable challenge when federal and state regulations change so quickly," said Elio Evangelista, research team leader at Cutting Edge Information. "Companies need to develop a process to determine reasonable physician payments, to document physician activities and to stay on top of new regulations."

"Thought Leader Compensation: Establishing Fair-Market Value Procedures" is a study of 46 pharmaceutical, biotechnology, medical device and third-party providers' fee schedules for physicians in 20 therapeutic areas and in various specialties. The report includes detailed fair-market value benchmarks culled from top companies, such as Pfizer, Sanofi-Aventis and Eli Lilly.

Download a free summary of "Thought Leader Compensation: Establishing Fair-Market Value Procedures" or purchase the report at http://www.cuttingedgeinfo.com/thoughtleadercompensation/index.htm#body.

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