AdvaMed Code of Ethics Adherents Get New Logo
BY DAVID KRESSEL, JULY 11, 2006
Late last month, AdvaMed created a logo licensing program for the AdvaMed Code of Ethics. For $300 per year, companies can license this logo which shows they have signed and comply with the Code.
In particular, the logo can be placed on any company material such as stationary, business cards, promotional materials, annual reports, and even conference banners and booths. It cannot be used to imply an endorsement of specific products or technologies.
On January 1, 2004, AdvaMed's Code became effective. Spurred on by the pharmaceutical industry's "Code on Interactions with Health Care Professionals," created by the Pharmaceutical Research and Manufacturers of America (PhRMA) in 2002, AdvaMed has tried to capture the spirit of PhRMA's code and HHS's OIG guidelines while recognizing differences between the drug and device industries. There are 7 areas of guidance:
*Company-Sponsored Meetings
*3rd Party Conferences
*Sales & Promotional Meetings
*Consulting Arrangements
*Gifts to Physicians
*Reimbursement and Technical Information
*Charitable Donations
This Code, if abided by all companies, would be beneficial. Large companies would see a slowing in the arms race of nicer hotels and fancier dinners, and small companies would face less of a barrier to entry. In addition, the code may mitigate the legal risk that large companies have recently had to deal with in regards to aggressive marketing tactics. This is noteworthy, given the recent DOJ investigations, and these investigations may end in multi-million dollar fines.
However, the practical implementation of this Code is in question inasmuch as a large percentage of the distribution in this industry is done by independents, some of which may not follow the Code, and are not the "deep pockets" the DOJ likes to attack. Likewise, certain surgeons continue to make demands that go against the Code, which puts companies in an awkward position.
We applaud those companies who have signed and upheld the Code despite the potential short-term business consequenses.
We would be interested to hear from our readership what, if any, changes to business practices they have noticed since the Code was issued.
