• 01
  • February
    2012

As part of the new health care law, the federal government will require drug companies to disclose payments made to physicians. According to the New York Times, about 25 percent of doctors receive money from large pharmaceutical or medical device companies. While a monetary exchange between pharmaceutical companies and doctors is very common, such relationships have the potential to create grave conflicts of interest. 

For example, think of buying a home. In most cases, realtors are motivated to sell you the most expensive property possible and quickly close the deal, regardless of whether it is the right house or condo for you and your family. And often this may be a property for which the realtor is the selling agent -- effectively doubling commission. This focus on maximizing commissions creates a conflict of interest when it comes to providing you with the advice best suited for your needs.

Similar to realtors, doctors who accept money from drug companies are more likely to prescribe certain medications without looking at alternatives, and perhaps not completely weighing all of the risks for a given patient. Because the doctor is receiving money from the drug or medical device company, he may not be providing you with the prescription or advice best suited for your needs.

The federal government's effort to create a more transparent environment for patients is a necessary step in curbing some of the most serious medical malpractice cases. By creating a database where patients, lawyers, and government officials can track payments, doctors will be held more accountable for negligently administering drugs.