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

Are pharma gifts to doctors a red herring?

Brian C. Joondeph, MD
Meds
July 31, 2017
Share
Tweet
Share

Physicians are influenced by marketing. That’s no surprise. So are most consumers, as evidenced by television and radio commercials, billboards, pop up ads and targeted ads for drugs on your computer screen. Big Pharma markets not only to physicians, but also directly to consumers.

In a recent Washington Post op-ed, Dr. Nicole Van Gronigen made the case that Big Pharma successfully influences physician prescribing behavior via marketing. Specifically, drug reps do with with free lunches provided by the pharmaceutical reps, or educational dinners at nice restaurants. She reported a JAMA study correlating industry-sponsored meals with increased promotion of branded medication to Medicare patients.

It’s no surprise that marketing works. If it didn’t, Big Pharma would not spend $24 billion per year on it — more than they spend on research and development. And perhaps, as Dr. Van Gronigen suggests, restricting pharma reps’ access to physicians may yield cost savings in health care. But is it really that simple?

The U.S. spends about $3 trillion per year on health care. Prescription drugs account for 9 percent of that, with physician and hospital care accounting for more than 50 percent of the cost. Keeping physicians away from that free lunch may be low hanging fruit, and might save a few dollars, but that alone is not likely to noticeably bend the cost curve.

Other economic pressures on physicians prescribing habits are already saving health care dollars in a more meaningful way. Existing downward pressure comes from patients’ ability to pay (especially amid high copayments and deductibles) and insurance companies’ willingness to pay — including the Medicare program.

Insurance plans have formularies — lists of medicines they will pay for. Low-tier drugs may be paid for in full by insurance plans, whereas high-tier drugs may carry a hefty copayment. In my retina practice, if I prescribe an expensive eye drop made by the pharma company that brought Chick-fil-A lunch for my office staff the previous week, I will get usually a call from the pharmacy telling me my patient cannot afford the expensive drop, requesting a cheaper alternative. Problem solved.

Payers have their own means of limiting indiscriminate expensive drug prescribing to counteract the effects of that filet mignon dinner with a side order of a Big Pharma pitch. In 2015, Congress passed the Medicare Access and CHIP Reauthorization Act which contains the Merit-Based Incentive Payment System. This system grades physicians on “resource use.” Physicians who cost more, whether from needlessly expensive prescriptions or excessive testing, lose a percentage of their Medicare reimbursement. And so despite that free sandwich from the drug rep, physicians already have reasons to think twice about which drug to prescribe when facing a potential 9 percent cut in reimbursement for the year.

That’s the stick. The carrot in MIPS is up to a 27 percent reimbursement bonus for higher quality, lower-cost care. Again, problem solved.

The real question is, why are physicians the only ones under scrutiny for payments received from industry? Over $3 billion per year is spent lobbying Congress and federal agencies to influence laws and government contracts, potentially costing taxpayers hundreds of billions of dollars. They influence members of Congress not with a few slices of pizza for lunch, but with all-expense paid African safaris for lawmakers and their families.

Physician morale continues to decline due to changing payment and delivery models. Going after doctors who accept a free lunch or occasional restaurant dinner, along with a chance to interact with colleagues and hopefully learn something, may be an easy way to save a few dollars. But that’s a red herring when it comes to the cost of care. There are already more powerful cost saving mechanisms in place that don’t involve beating down members of an already demoralized profession.

Brian C. Joondeph is an ophthalmologist and can be reached on Twitter @retinaldoctor. This article originally appeared in the Washington Examiner.

Image credit: Shutterstock.com

Prev

Neil Gorsuch and the case of Charlie Gard

July 31, 2017 Kevin 4
…
Next

When it comes to after-hours care, expectations need to be adjusted

July 31, 2017 Kevin 3
…

ADVERTISEMENT

Tagged as: Medications

Post navigation

< Previous Post
Neil Gorsuch and the case of Charlie Gard
Next Post >
When it comes to after-hours care, expectations need to be adjusted

ADVERTISEMENT

More by Brian C. Joondeph, MD

  • Ophthalmology in the era of COVID-19

    Brian C. Joondeph, MD
  • An ophthalmologist analyzes Joe Biden’s red eye

    Brian C. Joondeph, MD
  • When medical science becomes fake news

    Brian C. Joondeph, MD

Related Posts

  • The people vs. opioid pharma: Pharma wins again

    Rebecca Thaxton, MD
  • The opioid crisis: Doctors cannot lose hope

    Linda Girgis, MD
  • Why do doctors who hate being doctors still practice?

    Kristin Puhl, MD
  • Doctors: It’s time to unionize

    Thomas D. Guastavino, MD
  • Here’s why doctors must know prescription costs

    Mark Kelley, MD
  • Doctors as the gatekeepers of marijuana is a race to the bottom

    John Schumann, MD

More in Meds

  • Unregulated botanical products: the hidden risks of convenience store supplements

    Muhamad Aly Rifai, MD
  • “The meds made me do it”: Unpacking the Nick Reiner tragedy

    Arthur Lazarus, MD, MBA
  • The dangers of oral steroids for seasonal illness

    Megan Milne, PharmD
  • 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
  • Most Popular

  • Past Week

    • The blind men and the elephant: a parable for modern pain management

      Richard A. Lawhern, PhD | Conditions
    • The dangers of oral steroids for seasonal illness

      Megan Milne, PharmD | Meds
    • Catching type 1 diabetes before it becomes life-threatening [PODCAST]

      The Podcast by KevinMD | Podcast
    • Joy in medicine: a new culture

      Kelly D. Holder, PhD & Kim Downey, PT & Sarah Hollander, MD | Conditions
    • Physician asset protection: a guide to entity strategy

      Clint Coons, Esq | Finance
    • Public violence as a health system failure and mental health signal

      Gerald Kuo | Conditions
  • Past 6 Months

    • The blind men and the elephant: a parable for modern pain management

      Richard A. Lawhern, PhD | Conditions
    • Is primary care becoming a triage station?

      J. Leonard Lichtenfeld, MD | Physician
    • Psychiatrists are physicians: a key distinction

      Farid Sabet-Sharghi, MD | Physician
    • Why feeling unlike yourself is a sign of physician emotional overload

      Stephanie Wellington, MD | Physician
    • The U.S. gastroenterologist shortage explained

      Brian Hudes, MD | Physician
    • Accountable care cooperatives: a community-owned health care fix

      David K. Cundiff, MD | Policy
  • Recent Posts

    • How political polarization causes real psychological trauma [PODCAST]

      The Podcast by KevinMD | Podcast
    • The quiet bravery of breast cancer screening

      Michele Luckenbaugh | Conditions
    • How automation threatens medical ethics principles

      Muhammad Mohsin Fareed, MD | Conditions
    • When to test for pediatric seasonal allergies

      Dr. Tanya Tandon | Conditions
    • A doctor’s humbling journey through prostate cancer recovery [PODCAST]

      The Podcast by KevinMD | Podcast
    • The loss of storytelling with ambient AI systems

      Alexandria Phan, MD | Tech

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 6 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

    • The blind men and the elephant: a parable for modern pain management

      Richard A. Lawhern, PhD | Conditions
    • The dangers of oral steroids for seasonal illness

      Megan Milne, PharmD | Meds
    • Catching type 1 diabetes before it becomes life-threatening [PODCAST]

      The Podcast by KevinMD | Podcast
    • Joy in medicine: a new culture

      Kelly D. Holder, PhD & Kim Downey, PT & Sarah Hollander, MD | Conditions
    • Physician asset protection: a guide to entity strategy

      Clint Coons, Esq | Finance
    • Public violence as a health system failure and mental health signal

      Gerald Kuo | Conditions
  • Past 6 Months

    • The blind men and the elephant: a parable for modern pain management

      Richard A. Lawhern, PhD | Conditions
    • Is primary care becoming a triage station?

      J. Leonard Lichtenfeld, MD | Physician
    • Psychiatrists are physicians: a key distinction

      Farid Sabet-Sharghi, MD | Physician
    • Why feeling unlike yourself is a sign of physician emotional overload

      Stephanie Wellington, MD | Physician
    • The U.S. gastroenterologist shortage explained

      Brian Hudes, MD | Physician
    • Accountable care cooperatives: a community-owned health care fix

      David K. Cundiff, MD | Policy
  • Recent Posts

    • How political polarization causes real psychological trauma [PODCAST]

      The Podcast by KevinMD | Podcast
    • The quiet bravery of breast cancer screening

      Michele Luckenbaugh | Conditions
    • How automation threatens medical ethics principles

      Muhammad Mohsin Fareed, MD | Conditions
    • When to test for pediatric seasonal allergies

      Dr. Tanya Tandon | Conditions
    • A doctor’s humbling journey through prostate cancer recovery [PODCAST]

      The Podcast by KevinMD | Podcast
    • The loss of storytelling with ambient AI systems

      Alexandria Phan, MD | Tech

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

Are pharma gifts to doctors a red herring?
6 comments

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

Loading Comments...