As the healthcare industry continues to change with the implementation of new technologies, doctors and nurses are faced with certain challenges – especially when it comes to which medical device to use for patient cases. When it comes to medical device companies, there are certain guidelines that should be taken into consideration before any product or service can be implemented on the market, and once approved, how they are sold. One of the most important things to consider when dealing with these companies is their business ethics. This is where substantial issues arise – conflicts between device sales and doctor needs and governmental rules and regulations.
Consider Ethical Implications in Marketing
Some medical device companies have been widely criticized for using questionable sales tactics to convince doctors to use their products. One common example is offering doctors incentives like free flights or expensive gifts in exchange for using a particular device. While many medical experts say these practices are unethical and do not benefit patients, device companies argue that such tactics allow them to increase sales without having to spend additional marketing dollars on advertising. What has worked in the past is now under scrutiny from the Department of Justice. In January 2016, Johnson & Johnson agreed to pay $2.7 billion—the largest ever healthcare fraud settlement—after pleading guilty to bribing two hospitals in China with $1 million worth of bribes in exchange for buying its artificial hip implants.
Consider Ethical Implications in Sales
“But we’ve always done it this way,” stated a recently terminated medical device salesperson. The decision to terminate this individual was based on two factors, (1) their continued flagrant abuse of unethical sales practices; and (2) the need for the company to take decisive action to avoid a negative outcome from a pending investigation. While the first factor can be addressed through comprehensive training in appropriate sales techniques, ethics training is often overlooked. Businesses must establish expectations for ethical behavior as well as create an atmosphere that encourages discussion about these issues among employees. Employees should not feel constrained about taking advantage of such opportunities in order to build stronger businesses. It is also important that managers are able to successfully resolve concerns regarding ethical issues before such concerns escalate into larger problems or even crises.
What Is The Role Of The Board Of Directors?
The main purpose for a board of directors is to represent shareholders’ interests. The question is – are shareholder interests represented when company senior management overlooks the legal and ethical standards for sales? If, upon investigation, it’s determined that the company has lax sales standards or is willing to violate the law in order to advance sales performance, what liability does the board have for not knowing or taking action related to unethical conduct? … It should be noted that there are several studies on corporate boards of directors and their failure to exercise oversight responsibility as representatives of shareholders; how they’re more responsive to management than they are representative of investors.
What About The Responsibilities Of Executives And Employees?
When you’re an employee or a company executive it may seem like there’s not much you can do about ethical situations, but in reality each of us does have some responsibility for our role in making sure businesses practice good ethics. Just by being aware and considering how your personal behavior impacts business practices, you can take a strong stance against unethical behavior. (Source: Unethical Executive Behavior Forbes)
Better Watch Out the DOJ Is Looking At Medical Device Companies!
The federal government is set to investigate a number of medical device companies for possible antitrust violations. The investigation stems from allegations made by whistleblowers in several states. If you’re a nurse or doctor who is worried about your hospital purchasing devices from manufacturers they believe were engaged in anticompetitive practices, be sure to speak with an attorney to learn more about your rights under state and federal law. This new case could have a big impact on how medical device companies conduct business in our country.
What are your thoughts on the focused review of healthcare by the DOJ?
