Federal Inspectors Crack, Article Review Example

Federal Inspectors Crack down on corrupt drug Company Executives

Federal Inspectors in the US are cracking down on Company Executives where there business has been convicted of Medicare Frauds. The objective being to prevent them from conducting future business in the United States. Guidelines have been established by the Department of  Health that define how Executives may be barred from contracting with Federal Health care programs if they have participated or known about fraud  issues involving their firm.  (Edney, 2010).  A Washington lawyer stated that the current administration wanted to increase enforcement and that pure monetary compensation is insufficient to deal with the wider problem. They need to deter those individuals who go down the path of fraudulent activities.  15 year exclusion essentially puts the guilty Executive out of business. Some have described this as excessive whilst others have welcomed the introduction of these stringent methods.  The Government excluded professional people like Dentists, Nurses, and Doctors etc.

In addition the FDA (part of HHS) has placed on notice that the Drug Companies need to be aware that they will be held responsible for any illegal actions performed by their Executives.  The FDA has a number of discretionary powers that include banning Executives from working in the Pharmaceutical industry. It is expected that the FDA will shortly be issuing letters to those Companies and Executives that have resolved legal disputes from the Courts. Hence exclusion letters to those found guilty of Fraud or other serious misdemeanours.  No doubt a number of legal challenges will follow.

I selected this review because of the important social implications and potential harm that these people commit to the Public.  The need for increased visibility in the potential damage to the Medicare system.

A number of the major Companies like Glaxo in the UK have refused to comment, particularly in the light of recent scandals that included – “Recent fraud cases against companies like GlaxoSmithKline, ordered to pay a $750 million settlement for selling defective drugs; and Pfizer, which agreed to pay $2.3 billion for fraudulent marketing of medicine, have spurred authorities to crack down on regulation and accountability” (The Medical News, 2010). Other Companies like Pfizer have issued statements that they have issued new measures in order to prevent future occurrences but passed no comments on the possibility of Exclusion of Executives.

The FDA are going to take a close examination over those peripheral areas that are not automatically dealt with by law.  Certain actions already have an immediate exclusion posted against them under the law “”Certain crimes, such as patient abuse or a felony conviction of health-care fraud, require automatic exclusion by law, and  the inspector general has the discretion to bar a person in other cases, such as a misdemeanour conviction.” (Medical News Today, 2010).

Works Cited

Edney, A. (2010, 11 9). Drug Firm Executives under new scrutiny in Medicare Frauds. Washington Post. Medical News Today. (2010, 11 10). Federal Inspectors Crack Down On Corrupt Drug Company Executives. Retrieved 11 12, 2010, from Medical News Today: http://www.medicalnewstoday.com/articles/207342.php

The Medical News. (2010, 11 10). Federal inspectors crack down on corrupt drug company executives. Retrieved 11 12, 2010, from The Medical News: http://www.news-medical.net/news/20101110/Federal-inspectors-crack-down-on-corrupt-drug-company-executives.aspx