Abbott accused of sponsoring academic society too often

Lawmaker Ko Young-in “MOHW slacking on managing and monitoring K-Sunshine Act expenditure reports”

Global pharmaceutical and medical device company Abbott has been accused of providing questionable financial benefit to healthcare providers that exceeded the legal amount stipulated in the ‘Korean Sunshine Act.’ Apparently for a year, Abbott has sponsored Korean Society of Interventional Cardiology (KSIC) an approximate total of 250 million won for the participants in 12 overseas academic conferences and convened product presentations for their medical devices in grilled beef restaurants.

 

On Oct.

 

5, Democratic Party Lawmaker Ko Young-in reprimanded, “Abbott has been providing suspicious amount of financial benefit for KSIC as if it were their private pot of money.” The Korean Sunshine Act, or “K-Sunshine Act,” was enforced to mandate pharmaceutical and medical device companies to report their expenditure for financial benefit provision, but Lawmaker Ko argued the law has been useless.

 

The lawmaker pointed out the regulation was implemented three years ago, but the Ministry of Health and Welfare Committee (MOHW) has barely reviewed any of those reports.

 

He claimed the ministry has sampled and reviewed only four pharmaceutical and medical device companies’ reports filed in 2018.

 

Regarding the reports, Lawmaker Ko raised an issue regarding Abbott’s report on the financial benefit provision.

 

The reports submitted to the lawmaker’s office found that Abbott has sponsored KSIC a total of 250 million won for the society’s participation in 12 overseas academic conferences from February 2018 to March 2019.

 

Basically, Abbott has offered about 45 percent of all the overseas conferences the academic society participated during the same period of time, as its website posted schedules of total 29 overseas conferences.

 

The sponsored amount varied from maximum 50 million won to 50,000 won per event, and the report did not specify how many members of the society have received the out-of-pocket expense for the conference.

 

And the company also reportedly spent total of 227,290 won (16,235 per person) for food and beverage provision for 14 associates from a hospital on Mar.

 

28, 2018, from 6 p.m.

 

to 9 p.m.

 

Out of all expenditure reports submitted by Abbott, it was the only on product presentation for an individual healthcare institute.

 

The lawmaker’s office checked the restaurant located in Busan City mainly serve grilled beef menu ranging from Bulgogi priced at 16,000 won to special beef cuts priced at 23,000 won per portion During the product presentation, the company briefed about their product ‘Architect,’ which is an immunoassay analyzer frequently used in hospitals since a decade ago.

 

Lawmaker Ko pinpointed the product is too universally used already for a private product presentation.

 

And considering the product is massive system equipment, the lawmaker was suspicious if the presentation was properly conducted in a restaurant setup.

 

Moreover, Lawmaker Ko criticized MOHW for monitoring the expenditure reports from only four companies for last three years.

 

According to MOHW’s survey on expenditure report monitoring on pharmaceutical and medical device industries, 73.8 percent of the pharmaceutical industry was complying, whereas only 24.1 percent of the medical device industry was complying.

 

Ultimately, only 1,962 companies out of 6,206 companies (30 percent) have filed and achieved the reports.

 

188 companies, or 6.5 percent of the two industries, said they were not even filing the reports.

 

The Pharmaceutical Affairs Act stipulates the companies to file and archieve expenditure report on provided financial benefit for five years, and they are to submit them when demanded by the Minister of Health and Welfare.

 

The companies that have not filed or archived the report along with the ledger and evidential materials would be ordered to correct their practice and fined up to 2 million won.

 

Lawmaker Ko stated, “MOHW would have to properly operate and toughen the report monitoring according to the K-Sunshine Act that aims to cut the illegal ties between pharmaceutical and medical device industries and healthcare providers and hospitals.

 

The production cost of pharmaceuticals and medical devices would be raised and ultimately push up the National Health Insurance premium and medical service fee, if the healthcare providers and hospitals continue to receive excessive sponsorship from the companies for introducing new technology.” “As the industries used to provide rebate worth billions of wons, the current fine of 2 million won could be easily ignored by the responsible industries.

 

The fine should be raised and the reports should be mandatorily submitted or reviewed every year, or even rather publicly opened like in the U.S.

 

for the public to verify,” Lawmaker Ko added.