OIG Issues Fraud Alert on Pharmaceutical Company In-Person Speaker Programs
Before the pandemic put the chill on live conference events, it was fairly common for pharmaceutical companies, device makers and diagnostics companies to offer healthcare professionals fees for in-person speaking appearances. Such practices raise red flags under the federal Anti-Kickback Statute (AKS) when those speakers recommend the products of those companies to their patients. So, on Nov. 16, the OIG issued a Special Fraud Alert warning companies about restarting in-person paid healthcare professional speaker programs when COVID-19 restrictions lift. OIG Skepticism of Speaker Fees Program Federal government suspicion of paid speaker programs, especially by pharmaceutical companies, is nothing new. For example, Novartis recently agreed to pay $678 million to settle a seven-year-long legal battle with the OIG over allegations of using its speaker programs as a way to disguise bribes to doctors from 2002 to 2011. As part of the deal, Novartis agreed to cut back its future speaker programs. Salix Pharmaceuticals also ran afoul of the OIG and settled a civil fraud lawsuit settlement for $54 million in 2016, under which it had to admit that it paid doctors as speakers for programs that were mostly social events where little or no time was spent discussing drugs. So, Why Now? […]
- Selecting high-prescribing HCPs as speakers and rewarding them with lucrative speaker deals;
- Conditioning speaker remuneration on sales targets, such as requiring speaker HCPs to write a minimum number of prescriptions;
- Holding speaker programs at entertainment venues or during recreational events or otherwise in a manner not conducive to an educational presentation, such as wineries, sports stadiums, fishing trips, golf clubs, and adult entertainment facilities;
- Holding programs at high-end restaurants where expensive meals and alcohol are served;
- Inviting HCP attendees who previously attended the same program; and
- Inviting friends, significant others, and family members of the HCP who do not have a legitimate business reason to attend the program.
- Speaker programs with little or no substantive information actually presented;
- Availability of alcohol;
- Meals exceeding modest value provided to program attendees;
- Programs held at locations that aren’t conducive to the exchange of educational information, including restaurants or entertainment or sports venues;
- Sponsoring a large number of programs on the same or substantially the same topic or product, especially in situations involving no recent substantive change in relevant information;
- Significant passage of time with no new medical or scientific information nor a new FDA-approved or cleared indication for the product;
- Repeat attendance by HCPs on the same or substantially the same topics or being an attendee after being a speaker on substantially the same topic;
- Attendees who don’t have a legitimate business reason to attend the program;
- Influence of commercial employees over the selection of speakers or attendees based on past or expected revenue the speakers or attendees have or will generate by prescribing or ordering the company’s products; and
- HCP speakers paid more than fair market value for the speaking service or compensation takes into account the volume or value of past or potential future business generated by the HCP.
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