Skip to content
  • About
  • Contact
  • Contribute
  • Book
  • Careers
  • Podcast
  • Recommended
  • Speaking
  • All
  • Physician
  • Practice
  • Policy
  • Finance
  • Conditions
  • .edu
  • Patient
  • Meds
  • Tech
  • Social
  • Video
    • All
    • Physician
    • Practice
    • Policy
    • Finance
    • Conditions
    • .edu
    • Patient
    • Meds
    • Tech
    • Social
    • Video
    • About
    • Contact
    • Contribute
    • Book
    • Careers
    • Podcast
    • Recommended
    • Speaking

The largest health care fraud settlement in history: Is it big enough?

George Lundberg, MD
Meds
August 18, 2012
Share
Tweet
Share

A law is a rule of conduct or action formally recognized as binding and enforced by a controlling authority. Law enforcement broadly refers to any system by which some members of society act in an organized manner to promote adherence to the law by discovering and punishing persons who violate the rules governing that society.

The purposes of punishment for crimes include:

1. Punishment will stop them from committing further crimes.
2. Punishment tells the victim that society disapproves of the harm that he or she has suffered.
3. Punishment discourages others from doing the same thing.
4. Punishment protects society from dangerous or dishonest people.

But what if the alleged crimes are committed by corporations?

Do you believe that? Of course not. No corporations commit crimes. Human beings within corporations commit crimes.

Case at point: According to the U.S. Justice Department, GlaxoSmithKline LLC has agreed to plead guilty and to pay $3 billion to resolve liabilities arising from (a) the company’s unlawful promotion of certain prescription drugs for uses not approved by the FDA, (b) its failure to report certain safety data, and (c) its civil liability for alleged false price reporting practices.

This resolution is the largest healthcare fraud settlement in U.S. history and the largest payment ever by a drug company.

The Associated Press has reported that the improper marketing to doctors included expensive resort vacations, European hunting trips, high-paid speaking tours, and even tickets to a Madonna concert.

Did the punishment fit the crime and meet the purposes described above? I don’t think so.

The problems include:

1. The penalty sounds like a lot of money but that company made probably 10 times that much from its illegal actions.
2. This report sounds like a broken record, same bad behavior, different companies, same fines.
3. Companies like this with new leaders (the old guilty ones already took the money and ran free) just keep playing the same broken record, and the fines are nothing more than the “cost of doing business,” money regained by pricing practices.
4. The myriad docs who took the bribes also run free.

It is the recidivism of this whole industry behavior pattern that makes a cruel joke of Eric Holder’s (and his predecessors) Justice Department’s non-prosecutorial actions.

It seems to me that something like Racketeer Influenced and Corrupt Organizations (RICO) laws are going to have to be applied to the people who make these corporate decisions if the country really wants to change bad corporate behavior.

And not only for Big Pharmas.

ADVERTISEMENT

One time Alabama Governor and third party Presidential candidate George Wallace, himself a lawyer and one time judge, when discussing appropriate punishment for certain particularly egregious crimes, used to say that the jail was too good a place for certain criminals; they should be placed “under the jail.”

How about trying that kind of punishment for some guilty CEOs, Board Chairs, COOs and CFOs?

I’ll bet that would improve behavior really fast.

George Lundberg is a MedPage Today Editor-at-Large and former editor of the Journal of the American Medical Association.

Prev

MKSAP: 62-year-old man with a 2 month history of progressive fatigue

August 18, 2012 Kevin 0
…
Next

Chief Justice Roberts' health reform ruling analysis: A win-win?

August 18, 2012 Kevin 4
…

Tagged as: Medications

Post navigation

< Previous Post
MKSAP: 62-year-old man with a 2 month history of progressive fatigue
Next Post >
Chief Justice Roberts' health reform ruling analysis: A win-win?

ADVERTISEMENT

More by George Lundberg, MD

  • a desk with keyboard and ipad with the kevinmd logo

    Pathologists face a stark career choice

    George Lundberg, MD
  • a desk with keyboard and ipad with the kevinmd logo

    A culture of cover-up has slowed the patient safety movement

    George Lundberg, MD
  • a desk with keyboard and ipad with the kevinmd logo

    Do drugs aid and abet genius or does genius lead to drugs?

    George Lundberg, MD

More in Meds

  • L-theanine for stress and cognition

    Kamren Hall
  • The AI innovation-access gap in medicine

    Tiffiny Black, DM, MPA, MBA
  • How deprescribing in psychiatry offers a path to safer care

    Muhamad Aly Rifai, MD
  • The economics of medical weight loss

    Howard Smith, MD
  • Why the cannabis ethics debate is really about human suffering

    Gerald Kuo
  • Testosterone cardiovascular risk: FDA update 2025

    Martina Ambardjieva, MD, PhD
  • Most Popular

  • Past Week

    • Psychiatrists are physicians: a key distinction

      Farid Sabet-Sharghi, MD | Physician
    • The loss of community pharmacy expertise

      Muhammad Abdullah Khan | Conditions
    • Is primary care becoming a triage station?

      J. Leonard Lichtenfeld, MD | Physician
    • Sibling advice for surviving the medical school marathon [PODCAST]

      The Podcast by KevinMD | Podcast
    • What is a loving organization?

      Apurv Gupta, MD, MPH & Kim Downey, PT & Michael Mantell, PhD | Conditions
    • What is vulnerability in leadership?

      Paul B. Hofmann, DrPH, MPH | Conditions
  • Past 6 Months

    • Direct primary care in low-income markets

      Dana Y. Lujan, MBA | Policy
    • Psychiatrists are physicians: a key distinction

      Farid Sabet-Sharghi, MD | Physician
    • Patient modesty in health care matters

      Misty Roberts | Conditions
    • The U.S. gastroenterologist shortage explained

      Brian Hudes, MD | Physician
    • The Silicon Valley primary care doctor shortage

      George F. Smith, MD | Physician
    • California’s opioid policy hypocrisy

      Kayvan Haddadan, MD | Conditions
  • Recent Posts

    • L-theanine for stress and cognition

      Kamren Hall | Meds
    • The political selectivity of medical freedom: a double standard

      Arthur Lazarus, MD, MBA | Policy
    • The AI innovation-access gap in medicine

      Tiffiny Black, DM, MPA, MBA | Meds
    • Leadership buy-in is the key to preventing burnout [PODCAST]

      The Podcast by KevinMD | Podcast
    • A daughter’s reflection on life, death, and pancreatic cancer

      Debbie Moore-Black, RN | Conditions
    • What to do if your lab results are borderline

      Monzur Morshed, MD and Kaysan Morshed | Conditions

Subscribe to KevinMD and never miss a story!

Get free updates delivered free to your inbox.


Find jobs at
Careers by KevinMD.com

Search thousands of physician, PA, NP, and CRNA jobs now.

Learn more

View 4 Comments >

Founded in 2004 by Kevin Pho, MD, KevinMD.com is the web’s leading platform where physicians, advanced practitioners, nurses, medical students, and patients share their insight and tell their stories.

Social

  • Like on Facebook
  • Follow on Twitter
  • Connect on Linkedin
  • Subscribe on Youtube
  • Instagram

ADVERTISEMENT

ADVERTISEMENT

  • Most Popular

  • Past Week

    • Psychiatrists are physicians: a key distinction

      Farid Sabet-Sharghi, MD | Physician
    • The loss of community pharmacy expertise

      Muhammad Abdullah Khan | Conditions
    • Is primary care becoming a triage station?

      J. Leonard Lichtenfeld, MD | Physician
    • Sibling advice for surviving the medical school marathon [PODCAST]

      The Podcast by KevinMD | Podcast
    • What is a loving organization?

      Apurv Gupta, MD, MPH & Kim Downey, PT & Michael Mantell, PhD | Conditions
    • What is vulnerability in leadership?

      Paul B. Hofmann, DrPH, MPH | Conditions
  • Past 6 Months

    • Direct primary care in low-income markets

      Dana Y. Lujan, MBA | Policy
    • Psychiatrists are physicians: a key distinction

      Farid Sabet-Sharghi, MD | Physician
    • Patient modesty in health care matters

      Misty Roberts | Conditions
    • The U.S. gastroenterologist shortage explained

      Brian Hudes, MD | Physician
    • The Silicon Valley primary care doctor shortage

      George F. Smith, MD | Physician
    • California’s opioid policy hypocrisy

      Kayvan Haddadan, MD | Conditions
  • Recent Posts

    • L-theanine for stress and cognition

      Kamren Hall | Meds
    • The political selectivity of medical freedom: a double standard

      Arthur Lazarus, MD, MBA | Policy
    • The AI innovation-access gap in medicine

      Tiffiny Black, DM, MPA, MBA | Meds
    • Leadership buy-in is the key to preventing burnout [PODCAST]

      The Podcast by KevinMD | Podcast
    • A daughter’s reflection on life, death, and pancreatic cancer

      Debbie Moore-Black, RN | Conditions
    • What to do if your lab results are borderline

      Monzur Morshed, MD and Kaysan Morshed | Conditions

MedPage Today Professional

An Everyday Health Property Medpage Today
  • Terms of Use | Disclaimer
  • Privacy Policy
  • DMCA Policy
All Content © KevinMD, LLC
Site by Outthink Group

The largest health care fraud settlement in history: Is it big enough?
4 comments

Comments are moderated before they are published. Please read the comment policy.

Loading Comments...