The Korea Herald

지나쌤

1,600 doctors caught in rebate crackdown

By Korea Herald

Published : Dec. 25, 2011 - 18:24

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More than 1,600 doctors and nearly 400 pharmacists were found to have received rebates from pharmaceutical firms, a government investigation team said Sunday.

The team, led by the Seoul Central District Prosecutors’ Office, also indicted 25 medical professionals and pharmaceutical industry officials.

The 25 people, of which 11 were indicted without detention and 14 were subjected to summary indictment, include six working at medical institutions five of which are doctors, 10 pharmaceutical industry officials, six pharmaceuticals wholesalers and three employees of market research firms.

The investigators said that 1,644 doctors and 393 pharmacists received rebates and that they have requested the Ministry of Health and Welfare and other concerned authorities to issue penalties.

Medical professionals who are found to have received rebates are fined. Their licenses are either suspended for varying lengths of time or revoked depending on the amount of the fine.

Under current regulations, those paying up to 5 million won ($4,300) in fines are suspended from practicing for two months, while those fined between 5 million and 10 million won are suspended for four months.

Rebate-receivers who are fined 25 million to 30 million won are subject to a 12-month suspension.

The licenses of those who are sentenced to imprisonment on related charges are revoked.

In addition, eight pharmaceuticals firms and three drug wholesalers have been ordered to take back the funds illicitly given to medical professionals.

According to the investigation team, a mid-level management official at a pharmaceuticals firm gave 104 million won to 519 doctors and 325 pharmacists between December 2008 and September of this year, as rebate for choosing his company’s products.

Other companies were shown to have disguised rebates as rewards for taking part in simple surveys.

One company was revealed to have paid 1.3 billion won to 858 doctors for filling in a two-page survey last year, while another firm was shown to have spent 300 million won for having 219 doctors answer a one-page survey.

Other drug manufacturers and wholesalers were found to have paid much larger sums.

The investigation showed that two pharmaceutical companies made a 240 million won payment on behalf of a hospital to cover costs incurred from purchasing gifts marking the anniversary of its foundation.

Others received money to cover parts of the costs for establishing a new clinic, while an administrative official accepted 200 million won from pharmaceutical companies and wholesalers in return for selecting specific products.

Investigators also revealed a case where 200 doctors took rebates from a medical consulting firm, and requested changes be made to the Pharmaceutical Affairs Act to allow the authorities to penalize parties involved in cases.

By Choi He-suk (cheesuk@heraldcorp.com)