Requires that pharmaceutical manufacturers and medical device manufacturers disclose gifts of seventy-five dollars or more made to health care providers

Title of bill

An act to amend the general business law, in relation to disclosure of certain gifts provided by pharmaceutical manufacturers or medical device manufacturers to health care providers

Purpose or general idea of the bill

This bill is intended to benefit patients, enhance the practice of medicine, and ensure that the relationship between pharmaceutical and medical device manufacturers and health care practitioners not interfere with the independent judgment of health care practitioners. It seeks to accomplish these objectives without compromising companies' legitimate confidentiality interests in protecting trade secrets and other intellectual property rights associated with genuine medical research, clinical trials, and the discovery of new treatments and medical devices.

Summary of provisions

This bill adds article 38-B to the general business law.

Section 825 sets forth definitions of "pharmaceutical manufacturer," and "medical device manufacturer."

Section 826 requires the disclosure to the commissioner of health any gift, whether in the form of money, service, loan, travel, entertainment, hospitality, thing or promise, or in any other form, to a health care provider. Any pharmaceutical manufacturer or medical device manufacturer shall file with the commissioner an annual report containing:

* the name, address and telephone number of the pharmaceutical or medical device manufacturer; * an itemized list containing a description of each gift subject to this article; * the name, address and telephone number of the health care provider who received each gift; * the monetary value of each gift; and o Such other information as is deemed necessary by the commissioner of health for compliance with this article.

The following are exempt from discloser:

* The payment of reasonable compensation and reimbursement of expenses in connection with bona fide clinical trials; * Any gift the value of which is less than $75 dollars; * Scholarship or other support for medical students, residents and fellow to attend a significant educational, scientific, or policy-making conferences of a national, regional, or specialty medical or other professional association if the recipient of the scholarship or other support is selected by the association; * Unrestricted grants for continuing medical education programs; * Prescription drug rebates and discounts; and o Free samples of drugs.

Section 827 sets forth penalties.

Justification

Pharmaceutical and medical devices play a critical role in patient care. However, aggressive industry marketing of new drugs and devices to doctors through undisclosed gifts, consulting payments, speaking fees, classes and meals can inappropriately influence medical decisions and create conflicts of interest.

Congressional investigations and media reports have highlighted the potential for marketing to exert undue influence on prescribing. By requiring the disclosure of gifts and financial relationships, such disclosure will assist in creating more oversight in this arena.

Legislative history

New bill.

Fiscal implications

To be determined.

Effective date

This act shall take effect on the first of January next succeeding the date on which it shall have become law.