Stories and investigations from the healthcare industry continue to stay in the news longer than the War in Iraq or Brittney Spears latest follies. Almost daily there are revelations about how the economics of healthcare in the U.S., and governments are under increasing pressure to correct errors that the market has failed to address. Last week, for example, the New York Times reported that doctors give more attention to pharma sales people who bring free food.
Two years ago Minnesota ruled that pharmaceutical salespeople could not give more than $50 in free food to doctors per year. Now a study shows that doctors in Minnesota are rejecting pharma sales visits more than anywhere in the country. According to the NYTimes:
"The year after the change, the number of visits that Minnesota primary care doctors accepted from drug sales representatives decreased at about twice the rate of the decline reported by primary care doctors nationwide, according to a survey by ImpactRx, a New Jersey firm that tracks pharmaceutical marketing. A growing number of Minnesota hospitals and clinics have banned routine visits from them."
Pharmaceutical companies are naturally frustrated by these laws. They have less access to educate physicians, who are notoriously busy. This Minnesota law continues a trend that has been happening for a few years. Not too long ago, physicians accepted free laptop computers and were wined and dined on luxury tips - all to be educated, of course. But legislators and hospital administrators are cutting back, especially as studies show that they are very effective at influencing doctors' decisions.
The pressure of rising healthcare costs and consumer outrage at doctors' cozy relationships with big companies is driving change for the better in my opinion. As a consumer, I do not want my doctor taking payoffs. And if I were a pharmaceutical company, I would want my drug to stand on its own merit. Imagine spending billions on R&D to develop a better product that saves more lives - but losing to a competitor who does a better job of bringing in a doctor's favorite snacks.
The supreme irony here is that such gifts were eliminated decades ago by most companies. At my advertising agency, we routinely receive reminders from clients that any gifts to employees are unacceptable (and may result in losing the business). More than 20 years ago, Sam Walton revolutionized the retail business, in part by prevent his salespeople from taking even a free sandwich from a vendor. This helped drive enormous efficiency, and set the competitive playing field such that the best products and best shopper value won the day - not whether you offered the best gifts under the table. Challenging such bribery will result in improvement for all players in the healthcare game.
The healthcare industry is very late to driving some of the efficiency other markets figured out long ago. But this shows that progress is happening and we just might see some breakthrough efficiency here in the years ahead.
Comments