In response to a report from the Medicare Advisory Committee, the Obama administration is considering requiring drug and medical device companies to disclose payments made to doctors for research and consulting. It would also require doctors to disclose their ownership and investment interests in drug and medical device companies.

The change was recommended by the committee after finding evidence that medical treatment decisions made by doctors were influenced by their financial relationship with drug and device companies. In addition to increasing costs, patient advocates say outside financial interests can contribute to medical malpractice by making doctors more willing to prescribe risky medications or to use medical devices in a manner for which they have not been approved.

Investigative news stories have found that approximately 25 percent of doctors receive payments from pharmaceutical companies and medical device makers. Some doctors earn hundreds of thousands of dollars providing medical advice or speaking on behalf of the product.

The new reporting requirement does not prevent doctors from forming relationships with companies. It simply requires that information about these relationships be made available to the public so patients can identify a possible conflict of interest. The information will be available on a new government website.

Source: New York Times, "U.S. to force drug firms to report money paid to doctors," by Robert Pear, January 16, 2012.