Physician Payment Sunshine Act
Physicians and life sciences companies coming to terms with transparency?
Calls for more transparency and disclosure of payments made by the life sciences industry to health care professionals are creating challenges and opportunities for all parties involved in the delivery of health care. These new rules, such as the Physician Payment Sunshine Act (PPSA) in the U.S., were not intended to eliminate financial interactions between life sciences companies and individual health care providers, but rather to empower patients by providing visibility to those interactions. The hope was that by providing such visibility, patients could question whether the financial interactions might negatively affect their course of treatment.
To better understand how all parties are addressing these requirements and this new era of transparency, Deloitte, in collaboration with Forbes Insights, surveyed 110 U.S. based physicians and 223 global life sciences executives about transparency and these new requirements. The survey, Physician Payment Sunshine Act: Physicians and life sciences companies coming to terms with transparency? indicates that both parties appear to be coming to terms with the concept of transparency, and health care providers and life sciences companies expect to continue collaborating to develop new and more effective treatments for patients. Physicians do have concerns over how the data will be interpreted by the public (e.g., the context), as well as their own understanding of the requirements of the new regulatory environment.
Life sciences company executives, on the other hand, at this time are less focused on the public's interpretation of the data than the logistics of aggregating and reporting it. As a result, most are still investigating how best to leverage the data for competitive advantage once it becomes publicly available.
Other key survey findings:
|•||PPSA and other new regulations are requiring life sciences companies to make significant infrastructure and compliance program investments.|
|•||Despite the new reporting requirements, neither physicians nor life sciences companies plan to significantly change the way they currently interact.|
|•||Given how physicians say they learn, there may be opportunities for the life sciences industry to alter where it expends financial resources; this, in turn, may reduce the issues/objections to health care provider financial interactions.|
|•||While a majority of physicians surveyed acknowledge some financial interactions with the life sciences industry, most do not believe it is material to their overall income.|
Deloitte survey: Challenges abound, life sciences and health care industry comes to terms with transparency in healthcare payments
Download a copy of the report to learn more about physician and life sciences executive insights on transparency.