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Laws Restricting Data Mining of Physician Prescribing Records

Rx Data Mining Laws - What's Happening in Pharma

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Page 1: Rx Data Mining Laws - What's Happening in Pharma

Laws Restricting Data Mining of

Physician Prescribing Records

Page 2: Rx Data Mining Laws - What's Happening in Pharma

Outline

• State Governments’ View of Data Mining

• Other Views on Physician Prescribing Information

• How Will Pharmaceutical Companies Adapt in the Future?

Page 3: Rx Data Mining Laws - What's Happening in Pharma

State Governments’

View of Data Mining

Page 4: Rx Data Mining Laws - What's Happening in Pharma

Since 2006, there has been a movement in the Northeast to

attempt to restrict access to physician prescribing information

J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D

June 2006: New

Hampshire

prescribing law

is passed

June 2007:

Vermont governor

signs bill into

effect that limits

prescribing

information

November 2008:

Federal appeals

court overturns

lower court ruling

on New

Hampshire law

August 2007: IMS files

lawsuit against Vermont

August 2010:

Federal appeals

court upholds

constitutionality of

Maine law

April 2007: New

Hampshire law

restricting

prescribing

information is

overruled

June 2007: Maine law signed

into effect January 2008

December 2007: Maine

court rules that law violates

free speech

May 2009:

Vermont law

upheld in

court

J F M A M J J A S O N D

2006 20082007 2009 2010J F M A M J J A S O N D

Page 5: Rx Data Mining Laws - What's Happening in Pharma

Reasons why states believe restricting prescribing

information is important

Sales force may negatively influence the way physicians practice

medicine

Third-party access to prescribing data endangers the privacy of doctors

Help stop “harassing sales practices” and “restrain undue influence”

1.

2.

3.

4.

5.

Data Mining

Generic Branded

costs

costs

State governments hope to reduce healthcare costs by restricting

physician prescribing information

Page 6: Rx Data Mining Laws - What's Happening in Pharma

Maine law may provide example for other states

• Maine’s goal is to reduce

healthcare costs

• Doctors can choose whether or

not to release their information

– Currently, 265 doctors have chosen

not to release their prescribing

information

• Federal appeals panel upheld

the constitutionality of the law

• Similar New Hampshire law was

upheld last summer

Page 7: Rx Data Mining Laws - What's Happening in Pharma

20 additional states are now considering similar laws

Other states have created laws to protect the prescribing

information of physicians

New

Hampshire

Maine

Vermont

Page 8: Rx Data Mining Laws - What's Happening in Pharma

Other Views on

Physician Prescribing

Information

Page 9: Rx Data Mining Laws - What's Happening in Pharma

Physician prescribing information offers many benefits to

physicians and consumersInnovation

Samples and Lifesaving

Medication

Safety InformationNews Alerts

Monitoring Off-label Use

Reduced Costs

Data Mining

Data mining companies aim to reduce healthcare costs and use the

information to benefit physicians and patients

Targeted Sales Force

Page 10: Rx Data Mining Laws - What's Happening in Pharma

Some physicians feel data mining is helpful and useful

“Information can be presented to

me about products that are no

longer the best option for my

patients.”

“I can receive more samples

that will benefit my patients.”

“Sales representatives can provide

me with information about products

that are relevant to my practice and

patients.”

“I’m able to receive

safety information and

news alerts about the

products that pertain to

me and my patients.”

Page 11: Rx Data Mining Laws - What's Happening in Pharma

Other physicians feel they need to be protected from

data mining

“Sales reps intrude on

my practice armed with

personal information.”

“My prescribing habits are

between me and my patient.”

“They pressure me into

writing branded scripts.”

“It intrudes on the way I practice

medicine.”

Page 12: Rx Data Mining Laws - What's Happening in Pharma

How Will Pharmaceutical Companies

Adapt in the Future?

Page 13: Rx Data Mining Laws - What's Happening in Pharma

Pharmaceutical companies must find new ways to target

physicians

Sales Call

Low Tech

High Tech

PhysiciansPrescriptions

Data Mining

Sales Reps

E-detailing

Pharmaceutical companies will have to adapt to data mining laws

Page 14: Rx Data Mining Laws - What's Happening in Pharma

Restricting physician prescribing information will affect the

way pharmaceutical companies advertise

0

5,000,000

10,000,000

GE IM FM RHU PG

Scri

pts

Specialty

Top 5 Prescribers of Anti-inflammatory products

Data Mining

Segmentation

Concept

It will be harder for pharmaceutical companies to research and develop

campaigns to target physicians without access to their prescribing information

Campaigns

Sales Force

Pharmaceutical

Company

Page 15: Rx Data Mining Laws - What's Happening in Pharma

Summary

Page 16: Rx Data Mining Laws - What's Happening in Pharma

Summary

• State governments want to reduce healthcare costs by restricting

access to physician prescribing records

• Many physicians are unaware that their prescribing information is

available, and those who do know are divided in their opinions

• Data mining companies believe physician prescribing records reduce

healthcare costs and benefit physicians in numerous ways

• If more states limit data mining, pharmaceutical companies will have

to adapt to either high-tech or low-tech methods

• The way pharmaceutical companies advertise will be affected

Page 17: Rx Data Mining Laws - What's Happening in Pharma

If you’d like to find out more or have some interesting

insight into this evolving topic to share, please contact –

Mike Myers

President, Palio

[email protected]

Page 18: Rx Data Mining Laws - What's Happening in Pharma

Sources

Page 19: Rx Data Mining Laws - What's Happening in Pharma

Sources

• United States District Court, District of New Hampshire: Plaintiffs’

Statement of Facts in Support of Trial Memorandum

• Health Blog: Should Doc’s Prescribing Habits Be for Sale?

– <blogs.wsj.com/health>

• Bloomberg Business Week: The Fight Over Drug Data Mining

• http://pn.psychiatryonline.org/content/44/11/3.1.full

• http://www.firstamendmentcoalition.org/2010/08/1st-circuit-maine-

can-restrict-prescription-info/

• http://www.asi-solutions.com/getpage_pdr.asp?contentid=108

• http://www.cohealthcom.org/