Pharmacies, physicians, and their marketers should be aware of the continued rise in scrutiny of marketing practices utilized by providers. Recent increases in investigative and enforcement actions by Federal and state regulatory agencies, including the U.S. Department of Justice, against inherently fraudulent marketing arrangements and a regulatory environment that is in a constant state of flux make it imperative that pharmacies utilize the best marketing practices when marketing their products to physicians and other professionals authorized to prescribe medication. In particular, pharmacies should structure compensation methodologies for their marketing representatives or marketing companies to fit within applicable Safe Harbors to the Anti-Kickback Statute, and providers should strive to ensure that all marketing activities are conducted with high ethical standards, complete transparency, and in compliance with applicable federal and state laws and regulations. For example, providers should maintain bona fide employee relationships with their marketers and should pay such representatives fair market value compensation in consideration for their performance of marketing services, without taking into consideration the volume or value of the representative’s past, present, or anticipated business. With the start of this new year, providers should conduct a thorough review of their marketing arrangements and related policies and practices to establish best procedures for the marketing of products and performance parameters for their marketing representatives.
The Importance of Marketing Arrangements Between Pharmacies, Doctors, and Marketers
