UAB Synopsis, Vol. 24, No. 40, October 31, 2005
All physicians and other UAB Health System (UABHS) staff must ensure that interactions with vendors do not interfere with independent decision-making related to selection of therapies for patients or to the purchase of products and services from vendors. To clarify these often-murky areas, UABHS has issued an administrative standard "Interactions with Vendors" that details what behavior is acceptable for all employees of entities managed by UABHS, including University Hospital, The Kirklin Clinic®, and the satellite clinics. The School of Medicine (SOM) at UAB also has adopted this standard.
For example, it is inappropriate to allow vendors to fund purely social events, such as departmental or division Christmas parties. Physicians and staff may still accept modest meals if they are provided as part of an educational activity, such as UAB journal clubs or presentations of scientific papers at local restaurants.
It is also permissible to allow vendors to sponsor grand rounds and educational conferences, as long as SOM or Health System employees have sole control over the content and faculty. Vendors also may provide funds for medical students, residents, or other health care professionals in training to attend educational conferences, as long as the donation is made not to the individual — but to the hospital or School of Medicine department, which must choose the conference and the attendees.
Physicians and employees may not accept gifts of a personal nature from vendors.
Awareness is key
The full standard can be viewed on the SPP-SCR Web on UAB computers. Visit https://scr.hs.uab.edu/ and select the UAB Health System tab. Type "vendor interactions" into the search box and click on "search."
Awareness of the standard is important to comply with federal "kick-back" regulations and state law. UABHS and SOM health care professionals can consult for or advise vendors, including not only pharmaceutical and medical device companies, but also hardware and software companies and accounting, legal, and consulting firms. First, a written contract specifying the specific services and payment from the vendor must be obtained. The legal office must then approve the agreement. Payment should reflect fair market value for bona fide services.
Test yourself!
Consulting/advisory services
Q: May a faculty member enter into a consulting agreement with a medical device manufacturer to advise on general medical and business issues and provide guidance on product development and research programs for the manufacturer's products and for which the faculty member is compensated?
A: Yes, if the services are legitimate, reasonable, and necessary, if there is a written agreement describing the services in some detail, and if the compensation is fair market value. These agreements should be negotiated with the manufacturer's research division and not through their marketing or sales division. The agreements should be reviewed by UAB legal counsel.
Q: A pharmaceutical company submits a proposal to a School of Medicine department whereby the company proposes to pay the department for the opportunity to work with faculty members to assemble groups of patients for the purpose of talking with the patients about their chronic medical condition. The company also requests faculty members assist in educating their sales force about certain medical conditions. May the department accept the proposal?
A: No, it is not appropriate for departments, faculty, or staff to accept payment from vendors for access to patients or for access to other faculty members who are in a position to order the company's products.
Presentations and meals
Q: May a vendor provide pizza for the staff of a clinic office?
A: Yes, if the vendor representative provides an informational presentation to the staff in conjunction with the meal, so long as the location of the presentation is conducive to scientific or educational communication. A vendor dropping off food for staff that is not associated with a program is not appropriate.
Q: May vendors support medical resident journal clubs convened monthly at local restaurants, where there are educational presentations made by the residents?
A: Yes, as long as the educational presentation is the primary activity.
Q: A medical equipment manufacturer invites several UAB employees to a corporate suite at a professional baseball game for a 45-minute scientific and educational presentation, followed by a buffet and the baseball game. May the employees attend?
A: No, because educational activities should not be accompanied by the provision of entertainment.
Q: May vendors support holiday parties or other departmental social events?
A: No, because these are solely personal in nature.
Educational conferences and other donations
Q: May the hospital pharmacy accept donations from a pharmaceutical company for pharmacists and staff to attend educational conferences?
A: Yes. The hospital pharmacy must choose the recipients and the conferences; these decisions cannot be made or recommended by the pharmaceutical company.
Q: May the hospital solicit donations from vendors to support its fundraising activities, such as a golf tournament in support of the patient assistance fund?
A: Yes, as long as it is clear that the donations do not guarantee, and are not tied to, any business from UAB.
Q: May vendors support grand rounds lectures?
A: Yes, vendors may support educational activities.
Gifts
Q: May faculty accept a stethoscope from a vendor?
A: Yes, because it is related to clinical practice.
Q: May faculty or staff accept City Stages tickets from vendors?
A: No, because faculty and staff may not accept gifts of a personal nature from vendors.
Q: May faculty or staff accept gift certificates to a local restaurant from a vendor?
A: No, because faculty and staff may not accept gifts of a personal nature from vendors.