Monday, July 7, 2014

Second Question of the Day July 7, 2014 What do readers think about this hypothetical ( made up facts-and not based on any one company )? See any legal issues? Is it fine with consumers? Not fine?

Company A is a company that buys and supplies API to compounding companies in the United States.  Company A also owns a number of compounding formulas it has created and sells to compounding pharmacists and pharmacies.  Company A also owns a lab(Company B)  that test the API before it is sold.  Company A also owns a lab (Company C) that conducts required testing after a compound is prepared and before it is sold to the consumer.  Company A also employees compounding pharmacist who it does testing for.  Some of these compounding pharmacist are actual W-2 employees some are 1099.  Their job is answer the  questions of  other compounding pharmacists (the ones they compete for business with).  They also provide training to these other compounding pharmacists they compete with.  Company A also owns Company D. Company D is a lab that does hormone/saliva testing for compounding pharmacies.  The results are sent back to the compounding pharmacies and not to a doctor.  The compounding pharmacy then goes over the results of the blood/saliva test with the consumer.  The compounding pharmacy then refers the consumer to a doctor who it works with extensively to supply compounded prescriptions.  The doctor never tries commercially availables  on the patients first.  The doctor prefers to write scripts for commercially available drugs under any circumstances.  What if the sales representative for the compounds is married to the pharmacist.  The pharmacist son works for Company A.  The pharmacist daughter works for company B.  The pharmacist sister works for Company C.  And the Pharmacist brother-in--law works for company D.  While no problem working for whatever company a person wants, what are the ethical, issues if any?  Should there be industry standards/ethics for these situations to avoid even an appearance of conflict of interest.  What about full disclosure to the consumer?  Should that be required? Is that something consumers want to know?  Should know?   Why about if Company A also owns a compounding pharmacy (Company E)?  What about if they own an outsourcing facility (Company F)?   Are there any limits?  All ethic?  All legal?  What about if all the companies including the compounding pharmacy are housed in the same building?  What about if the compounding pharmacy is located in another city but the compounding pharmacists rents a house in the city of Company A and deducts as a business expense.  The purpose of the house is when the compounding pharmacist is doing work for and taking preparations and reports back and forth to company A, B, C, and D. Is that okay?  Should people involved in the compounding world have their own more clearly defined guidelines and ethics to avoid conflicts of interest and to avoid the appearance of conflicts of interest?  Does it matter?  Why or why not?

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