Physician Leaders Urge PMAs to Reduce Industry Influence

Eleven former and current leaders of professional medical associations (PMAs) published an article in the April 1 Journal of the American Medical Association, calling on physicians to reject funding from pharmaceutical and medical device industry groups.

In the article, the group states that the ideal physician-industry relationship would involve no industry contributions. However, the group recognized that industry groups help fund continuing medical education (CME) programs that are crucial to professional development. The group recommends that PMAs set a benchmark that no more than 25 percent of funding be derived from industry groups.

The group believes that physician integrity and quality may be compromised through industry-funded educational programs. Their fear is that the educational programs may turn into marketing sessions, slanted to support a certain company's device or procedure. The group does not advocate for restrictions on industry presence in exhibit halls and advertisements, since these are presented as clear marketing efforts.

The group urges PMAs to form committees that would be in charge of collecting non-restricted industry funds, allocating them among a variety of educational programs. Many groups have already taken efforts to strengthen their codes of conduct to prevent potential conflicts of interest.

Congress has also voiced its support for industry-physician transparency. Sen. Chuck Grassley (R-IA) and Sen. Herb Kohl (D-WI) have introduced the Physician Payments Sunshine Act (S. 301), which would require companies to report all gifts and payments to physicians totalling more than $100 a year to the Department of Health and Human Services. Those who fail to report would face fines of up to $1 million.

Source: BNA

CBO Foresees Access Problems from Physician Pay Cuts

The Congressional Budget Office (CBO) predicts fewer physicians will participate in Medicare if Congress allows a 21 percent pay cut in 2010 and cumulative cut of 40 percent by 2014.

The CBO predicts that the cuts may lead many physicians, especially those in primary care, to either stop participating in Medicare or stop accepting new Medicare patients. It is predicted that specialists would either follow one of these options, or compensate for lower payment by increasing the number of tests and procedures performed.

The CBO also predicts that reduced access will force many patients to seek treatment in emergency rooms, where they may not receive the proper level of treatment.

The CBO's letter to the House Budget Committee can be found at:
http://www/cbo.gov.