COMPANIES MUST CREATE POLICIES TO MONITOR FOREIGN GIFT GIVING, EXPERT SAYS

Companies should create strong policies to monitor and regulate compliance with the Foreign Corrupt Practices Act (FCPA), as the number of cases in the healthcare industry is growing, an industry expert said.

Under the FCPA, any gift given to a foreign public official to obtain or retain business is illegal, Gary Giampetruzzi, senior corporate counsel for Pfizer, said. This is important for healthcare companies because the Department of Justice considers employees of government institutions, such as physicians in government hospitals, to be public officials.

Pfizer's sales representatives outside the U.S. average 125,000 interactions with physicians in government hospitals each day, Giampetruzzi said in an FDAnews audioconference. Recently, companies have been charged for "corrupt payments" of travel, lodging, meal and gift costs. These practices are fine if done the right way, but companies have to ensure they are following local and federal regulations, Giampetruzzi said.

Each company must create a compliance program instead of just making policy statements, Giampetruzzi said. This means companies should have detailed guidances, with steps and actions outlined.

Controls are the most important part of a compliance system, according to Giampetruzzi. Companies should focus on developing and communicating clear policies, along with establishing regular training, certifications and audits to ensure the programs are working correctly.

More information on the audioconference can be found at www.fdanews.com/wbi/conferences/fcpact.html.