Ten well-known drug companies in Canada have started to voluntarily disclose how much money they pay to physicians, hospitals, and health care groups, with the information posted on their websites. The ten companies participating in the voluntary disclosure are: GlaxoSmithKline, Amgen, Bristol-Myers Squibb, Gilead, Eli Lilly, Merck, Novartis, Purdue, Roche, and AbbVie Corp.
There are three different categories that the voluntary disclosure covers: fees for health care professional services/transfer of value to Canadian health care professionals; funding to health care organizations; and sponsorship of Canadian health care professionals travel.
The fees for service category covers any direct or indirect payments made to a Canadian health care provider, defined as: a payment to the HCP as an individual; a payment to the HCP’s incorporated name or business name for services rendered by that HCP; a payment indirectly to the HCP through a third-party intermediary; or a payment made to a health care organization for services rendered by an HCP associated with or employed by the health care organization.
The funding to health care organizations covers any direct or indirect funding to a health care organization for supporting efforts related, but not limited, to charitable, educational, and scientific activities. The provision specifically excludes any funding resulting a purchase/exchange of goods or services, such as commercial booths or business to business/partnership agreements; all funding related to clinical trials; and payments made to a Canadian health care organization for services rendered by a HCP and which have already been disclosed under the first category.
Sponsorship of travel is defined as a direct or indirect provision of financial assistance to a Canadian health care provider for the purpose of attending an international congress for expenses related to travel, accommodation, meals, and congress registration fees.
GlaxoSmithKline (GSK Canada) spearheaded the voluntarily disclosure, revealing it paid a little over $2 million to health care providers and organizations in 2016. Approximately $1.19 million of that went to fund health care organizations, while it paid roughly $943,000 in fees for health care professional services. GSK Canada paid $0 in “Sponsorship of HCP Travel.”
Merck Canada made roughly $9 million in payments, with over $7 million going toward health care professional services and $2 million to patient groups and health organizations.
Roche Canada made $8 million in payments to doctors and health organization groups. That amount was broken down into the three categories, with roughly $6.14 million in fees to healthcare providers (including payments for services, such as the provision of unfunded medical services, and speaking and/or consulting engagements); $2.17 million for funding to health care organizations (including grants and donations that support efforts such as philanthropic, educational, and/or scientific activities); and $267k in sponsorship of health care provider travel (funding to support provider travel to attend international congresses and/or global standalone meetings hosted by Roche).
The ten companies made $48 million in payments throughout 2016, though not all companies were able to include figures for the entire year. The ten companies announced – through an industry group Innovative Medicines Canada – that they would all begin to release the numbers, as they are all committed to “enhancing trust by disclosing the payment voluntarily.”
More countries are passing Sunshine-style transparency reporting programs with each passing year. These Canadian companies have decided to take the initiative to disclose these payments without any legal requirement, more likely than not, in an attempt to pre-empt any legislative efforts to mandate it.