BY GEROME DALIPE IV
ILOILO City – Is it ethical or legal for medical doctors to own and operate pharmaceutical companies?
In the world of healthcare setting, the connection between the practice of medicine and business interests poses both legal and ethical issues.
Such a dilemma may arise when the doctors not just make prescriptions of the medicines but own, or have shares in the pharmaceutical companies that manufacture these drugs.
Hence, the serious question arises: Is it ethical or legal for medical doctors to own and operate pharmaceutical companies?
Famed lawyer John Paul Nabua aptly explained such an issue in his column published on his social media page on a scenario when doctors also own a stake in a pharmaceutical business.
To begin with, Nabua said it is worth examining various statutes and regulations that govern both the medical and pharmaceutical industries.
“Doctors as business owners of pharmaceutical entities blur traditional roles and introduce potential conflicts of interest, particularly when they stand to profit from prescribing medications from their own companies,” wrote Nabua.
The lawyer stressed that such circumstances are far from mere conventional marketing strategies employed by pharmaceutical companies to raise sales such as incentives, informational dinners, or free samples.
“The primary legal concern here is the breach of fiduciary duty. Physicians are legally and ethically obligated to prioritize their patients’ health over personal financial interests,” said Nabua.
Apparently, the lawyer said that doctors having a stake in a pharmaceutical company could potentially be influenced by business interests, which poses a risk of biased prescribing practices.
“This could contravene statutes, which are strictly enforced to prevent healthcare providers from receiving any form of kickbacks in exchange for patient referrals or the prescribing of specific medications,” said Nabua.
Ethically, Nabua noted that the physician ownership of pharmaceutical companies complicates the trust essential to the doctor-patient relationship.
But he pointed out the prescription to the patients must be based on the “best available evidence and their health needs, not the doctor’s financial interest.”
“Furthermore, if such ownership arrangements incentivize doctors based on sales volumes or quotas, they raise grave concerns about over-prescription and the unnecessary use of medications, which can harm patients and lead to higher healthcare costs,” said Nabua.
In order to address these issues, he said that robust regulatory oversight and clear guidelines are required from both healthcare and pharmaceutical governing bodies.
“Transparency is key: Physicians should disclose any ownership interests in pharmaceutical companies, and regulatory agencies must ensure that these disclosures are made public to maintain transparency and patient trust,” said Nabua.
Likewise, he said that rigorous enforcement of existing laws and possibly the creation of new regulations are necessary to adequately manage these conflicts of interest.
“Violations should lead to significant consequences, reinforcing the importance of ethical medical practice and safeguarding patient welfare,” he said.
Given this situation, he said there is a need for ongoing dialogue within the medical community and with the public about the implications of physician- owned pharmaceutical companies.
“This dialogue should aim to educate both physicians and patients about the potential risks and ethical considerations of such business arrangements, promoting an informed and vigilant approach to healthcare,” Nabua said.
The lawyer also pointed out that propriety and legality continues to be the subject of debate and scrutiny.
Hence, regulations and ethical guidelines ensure the sanctity of the medical profession and the well-being of patients.
“The core issue at stake is the preservation of trust — the cornerstone of the patient-physician relationship and an indispensable element in effective healthcare delivery,” Nabua said.
“As such, this topic deserves careful consideration and proactive management to prevent any erosion of this foundational trust,” he added.
Nabua said that given the potential conflicts of interest and implications for health care, there should be a congressional inquiry on such a practice to help clarify the legal boundaries and ethical standards.
“Such an inquiry would help clarify the legal boundaries and ethical standards, ensuring that physician involvement in pharmaceutical companies does not undermine the integrity of medical practice or patient welfare,” said Nabua./PN
