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Massachusetts governor signs disclosure law

Pharma Compliance Alert, August 13, 2008

Massachusetts became the latest state to require disclosure of industry gifts to physicians, but refrained from banning gifts outright.

In April, the Massachusetts Senate unanimously approved a bill banning all industry gifts to physicians. In July, the House unanimously approved a healthcare reform bill, but without the gift ban. On August 10, Massachusetts Governor Deval Patrick signed a comprise bill into law.

• Creates an academic detailing program to provide unbiased information to prescribers
• Requires pharmaceutical companies to disclose payments to healthcare providers valued at $50 or more
• Directs the state’s Department of Public Health to establish regulations on marketing, using the industry’s own code as a minimum standard 

In addition to banning some gifts and requiring disclosure of others, it calls for the state to develop a code of conduct for industry representatives that includes a $5,000 fine for each violation. Pharmaceutical and medical device companies must also disclose the “nature and purpose” of every payment to physicians.

Pharmaceutical Research and Manufacturers of America Senior Vice President Ken Johnson criticized the bill in a statement, saying the law could have grave consequences on both the future of clinical research in Massachusetts and patient health in general. Johnson said making the newly updated PhRMA Code on Interactions with Healthcare Professionals into law takes away pharmaceutical companies’ flexibility to update compliance programs.

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