Apr. 1, 2010: Pharmaceutical law and restaurants

>> NOT TOO LONG AGO THE BACK
ROOMS OF RESTAURANTS WERE
BUDSING NIGHTLY WITH
PHARMACEUTICAL SPONSORED
DINNERS WHERE SALES REP KOS
MARKET THEIR NEWEST DRUGS TO
DOCTORS.
BUT LAST JULY THAT CHANGED
MAKING THE ONCE COZY DRUG
COMPANY DOCTOR RELATIONSHIP
A THING OF THE PAST.
>> THE DOWN ECONOMY HAS HIT
THE RESTAURANT INDUSTRY
HARD.
BUT FOR RESTAURANT OWNERS
LIKE SONOMA'S BILL BRADY
THERE WAS ONE UPSIDE.
-- PHARMACEUTICAL DINNERS
WHERE A DRUG COMPANY WOULD
MARKET THEIR NEWEST DRUG TO
DOCTORS.
>> THERE WAS ONE THAT STIKD
OUT IN MY MIND.
WHEN THE FOOIDZER
CORPORATION INTRODUCED THEIR
DRUG VIAGRA EVERYONE WANTED
TO KNOW ABOUT THIS NEW
MIRACLE DRUG.
AND WE WERE JUST BURSTING AT
THE SEEMS.
>> BUSINESS WAS SO GOOD THAT
IN 2002, BRADY DOUBLED THE
RESTAURANT SIZE TO
ACCOMMODATE THE DEMAND.
BUT IT ALL CAME TO A
SCREECHING HALT LAST JULY
WHEN A NEW LAW BANNING
DOCTORS FROM ACCEPTING GIFTS
FROM DRUG COMPANIES TOOK
EFFECT.
>> I LOST $65,000 IN SALES,
DIRECT SALES.
>> Rooney: HE SAYS IN THEORY
THE LAW HAS NOBLE INTENTIONS
BUT IN REALITY, THOSE LAVISH
DINNERS WEREN'T AS
APPETIZING AS CRITICS LIKE
TO BELIEVE.
>> IT'S REALLY NOT LIKE THEY
ARE BEING WINED AND DINED.
THEY ARE SITTING DOWN TO A
NICE MEAL BUT THERE COULD BE
LIKE A MOTT LATED FOOT UP ON
THE SCREEN.
>> BRADY ALSO SAYS HIS
WEIGHT STAFF IS OUT $13,000
IN TIPS THIS YEAR.
THAT'S A HEFTY CUT IN PAY
FOR WAITRESS COURTENAY
CALLAHAN WHO SAYS 60% OF OUR
MIDWEEK TIPS CAME FROM
PHARMACEUTICAL DINNERS.
>> I WOULD SAY 400 A WEEK.
>> Rooney: CALLAHAN THINKS
THE RESTAURANT INDUSTRY IS
GETTING A RAW DEAL,
ESPECIALLY SINCE THE BAN ON
GIFTS ONLY STRETCHES TO THE
STATE'S BORDER.
>> THEY STILL LET THEM GO ON
IN NEW JERSEY, NEW HAMPSHIRE,
CONNECTICUT, RHODE ISLAND,
ALL AROUND US.
AND WE HAVE EVEN HEARD
DOCTORS THAT ARE GOING TO
NEW HAMPSHIRE TO HAVE
DINNERS.
>> Rooney: AND THAT'S NOT
THE ONLY LOOPHOLE.
BRADY SAYS THE LAW ALLOWS
RESTAURANTS TO CATER LUNCHES
AND DINNERS AT HOSPITAL ITS.
BUT AT A FRACTION OF THE
COST.
>> IT'S NOT EVEN 5% OF THE
BUSINESS HI.
>> Rooney: BRADY IS
COMPETITIONING TO HAVE THE
BAN ON DINNERS LIFTED.
BUT IN THE MEANTIME, SAYS
WILL TAKE WHAT HE CAN GETS.
JOINING ME IS STEVE
DEPHILIPO, OWNER OF DAVIOS
AND AVILA AND DR. DANIEL
CARLAT WHO ONCE WORKED AS A
SPEAKER FOR A PHARMACEUTICAL
COMPANY.
WELCOME TO BOTH OF YOU.
STEVE, I KNOW YOU SAID ON
THE RECORD THAT THIS IS
DEEPLY, DEEPLY AFFECTED ALL
YOUR BUSINESSES.
>> YES.
>> Rooney: CAN YOU
UNDERSTAND WHAT THIS IS ALL
ABOUT, YOU KNOW, LEGISLATORS
SAY IT WILL CUT BACK ON
HEALTH-CARE COSTS BECAUSE
ARE YOU NOT SELLING THINGS
TO PEOPLE UNNECESSARILY.
ESPECIALLY DESIGNER DRUGS.
AND THAT IT'S A CONFLICT OF
INTEREST FOR SOME OF THESE
DOCTORS.
>> SO DOW REALLY THINK LILY
OR PFIZER WILL CHARGE LESS
FOR THEIR DRUGS THAN THEY DO
TO NEW MARCH OR TO
PENNSYLVANIA.
I DON'T BELIEVE THAT.
AND YOU KNOW, BESIDES MY
PARENTS WHO DO I TRUST THE
MOST IS MY DOCTOR.
AND I TRUST MY DOCTOR TO GO
TO AN EDUCATIONAL DINNER
WHERE DOCTOR ON DOCK TORE,
AND COME, AND LEARN ABOUT
THE DRUG.
AND RECOMMEND THE RIGHT
DRUG.
I MEAN I TRUST MY DOCTOR.
AND.
>> Rooney: YOU DON'T THINK
THEY WILL BE UNDULLY
INFLUENCED.
>> WE'RE TALKING ABOUT
DOCTORS.
I MEAN THEY GO TO DOCTOR
SCHOOL FOR 12 YEARS.
TO BECOME A DOCTOR IT YOU
KNOW, I THINK I CAN TRUST MY
DOCTOR TO MAKE AN
EDUCATIONAL DECISION.
>> Rooney: WHAT ABOUT THAT,
DANIEL.
IT SEEMS LIKE THE DAYS ARE
OVER WHEN SOMEBODY GOING TO
BE BOUGHT OFF OVER A NICE
VEAL CHOP.
>> I WORKED ON BOTH SIDES OF
THE ISSUE SO I USED TO BE IN
THE AUDIENCE, I WAS ONE OF
THE DOCTORS WHO WAS WINED
AND DINED.
NOT AT DAVIOS BUT SOME OTHER
RESTAURANTS.
AND I ALSO WORKED FOR ONE OF
THE COMPANIES ACTUALLY
GIVING THE TALKS, SO WHAT I
FOUND OUT IN DOING ALL THAT
IS THAT THESE ARE NOT REALLY
EDUCATIONAL EVENTS FOR DRUGS
BUT REALLY INFOMERCIALS FOR
THESE DRUGS AND WHAT HAPPENS
IS THE DOCTORS THAT GO TO
THESE EVENTS ENDS UP
PRESCRIBING THE MOST
EXPENSIVE AND NEWEST DRUGS
TO PATIENTS EVEN WHEN
CHEAPER GENERIC DRICK DRUGS
THAT ARE OFTEN PENNIES ON
THE DOLLAR COMPARED TO THE
NEWER DRUG WAS WORK JUST AS
WELL.
>> Rooney: WHY WOULD THEY DO
THAT?
>> BECAUSE OF MARKETING
HYPE.
THE DOCTORS WITH 12 YEARS OF
EDUCATION ARE JUST AS
VULNERABLE TO MARKETING,
ESPECIALLY WHEN THEIR
CRITICAL FACULTYS HAVE BEEN
SOFTENED A LITTLE BIT WITH
SOME NICE WINE AND DINNER.
>> Rooney: THEY ARE NOT
PRESCRIBING THE DRUG THAT
NIGHT.
>> WELL, KNOW, BUT WHAT
HAPPENS IS YOU ARE GETTING
THE INFORMATION, RIGHT, AND
INCORPORATING THAT INTO YOUR
CLINICAL PRACTICE.
AND THERE ARE MUCH, MUCH
BETTER WAYS TO GET
INFORMATION THAN GETTING
FROM A COMPANY-HIRED SPEAKER
DURING A NICE DINNER.
>> Rooney: STEVE YOU MAKE
THE ARGUMENT THOUGH THAT ON
THE OTHER HAND, YOU KNOW,
THIS IS A DOWN ECONOMY.
STATE HAS LOST A LOT OF
JOBS.
PEOPLE, SOME OF THESE
RESTAURANTS HAVE THESE HUGE
ADDITIONS, I DON'T KNOW IF
YOU DID ANY OF THAT WITH
YOUR.
>> YES.
>> Rooney: DEVASTATING IN
TERMS OF LOSS OF JOBS.
BUT I MEAN THE FLICH SIDE OF
THIS IS ONCE AGAIN THE FACT
THAT, YOU KNOW, COST OF
HEALTH CARE AND THE FACT
THAT THE MEDICAL INDUSTRY
HAS HAD TO REGULATE ITSELF
BECAUSE OF THE FACT THAT SO
MANY CONCERNS OVER CONFLICT
OF INTEREST HAVE EXISTED.
>> BUT IF YOU LOOK AT THE
COST OF THE DRUGS, OF YOUR
BILL, WE TALKED ABOUT THIS
EARLIER.
IT'S NOT AS MUCH AS YOU
THINK, RIGHT.
I MEAN HOW MUCH IS THE
PHARMACEUTICAL COST OF
HEALTH CARE?
FOR OUR STATE.
>> IT'S A CERTAIN PASSAGE.
>> BUT IT'S A A SMALL
PERCENTAGE.
>> IT'S NOT A HUGE
PERCENTAGE BUT EVERY LITTLE
BIT DOES COUNT.
>> Rooney: A LOT OF PEOPLE
PAY THAT OUT OF THEIR OWN
POCKET.
>> BUT IF YOU LOOK AT MEALS
TAXES THAT WE LOST, THE JOBS
THAT WE LOST, I MEAN WE'RE
NOT MAKING ANYTHING.
YOU KNOW, I THINK THE
ARGUMENT IS THE ETHICAL
THING.
BECAUSE I DON'T, THE MONEY
THING DOESN'T MAKE ANY
SENSE.
THE ETHICAL THING DOESN'T
MAKE ANY SENSE TO ME.
I JUST DON'T UNDERSTAND HOW
ALL THESE OTHER STATES ARE
DOING FINE WITH IT BUT WE
HAVE TO DO THIS.
>> IF HE HAS
MANNY-- MASSACHUSETTS
REGULATING THIS WHEN HEALTH
INSURERS HAVE DONE SOME OF
THE REGULATING THEMSELVES,
PARTNERS PUT IN PLACE SOME
RESTRICTIONS THAT ARE EVEN
MORE ONEROUS.
>> MANY OF THESE
RESTRICTIONS CAME ABOUT
AFTER THIS LEGISLATION WAS
PASSED AND ACTUALLY IT NOT
JUST MASSACHUSETTS NOW WITH
THE NEW HEALTH REFORM
PACKAGE, THERE IS A
PHYSICIAN PAYMENT ACT THAT
IS NATIONAL AND NOW ALL
PHYSICIAN, ALL DRUG
COMPANIES WILL HAVE TO
DISCLOSE HOW MUCH MONEY THEY
PAY TO PHYSICIANS TO GIVE
TALKS.
I THINK THERE GOING TO BE AN
AFFECT THROUGHOUT THE
COUNTRY AND I DON'T THINK IT
WILL JUST BE MASSACHUSETTS.
>> Rooney: WHAT DO THEY SAY
TO YOU WHEN YOU GO UP ON
BEACON HILL AND TALK TO THE
LEGISLATORS.
>> THEY THINK THEY ARE LOW
ON HEALTH-CARE COSTS BUT
EMILY THEY CAN STILL DO IT
IN THE HOSPITAL.
THESE EDUCATIONAL MARKETING,
YOU CAN CALL THEM, YOU CAN
STILL DO IT IN A HOSPITAL.
>> Rooney: IT IS A LOOPHOLE.
>> IT IS A LOOPHOLE.
>> Rooney: YOU CAN CATER AN
EVENT, TAKE THE DAVIOS
DINNER AND BRING IT TOY A
HOSPITAL.
>> IT MORE LIKE A LUNCHEON.
BUT THEY ARE STILL DOING,
THEY GIVE OUT THE FOOD, I'M
TALKING THE EDUCATIONAL PART
OF THIS, STILL HAPPENING IN
HOSPITALS.
WHY CAN'T IT HAPPEN IN A
RESTAURANT.
>> GOING INTO HOSPITALS AND
THE DOCTORS OFFICES WAS
EXACTLY ONE OF THE THINGS I
DID FOR WYETH WHEN I WAS
PUSHING A DRUG.
AND THAT IS ANOTHER FORM OF
INFOMERCIAL MARKETING WHERE
I PUSHED THE DRUG AND I
DE-EMPHASIZED DISCUSSIONS
ABOUT SIDE EFFECTS OF THE
DRUG WHILE TALKING ABOUT ALL
THE GLOWING BENEFITS OF IT.
AGAIN DOCTORS WERE
PRESCRIBING A VERY EXPENSIVE
MEDICATION WHEN A CHEAPER
MEDICATION WOULD HAVE WORKED
FINE.
>> Rooney: DON'T DOCTORS
KNOW HOW TO WEED THAT OUT.
>> MASSACHUSETTS 60% OF
DRUGS IS GENERIC, THE
LARGEST IN THE COUNTRY.
MOST STATES ARE 20%.
I'M NOT MAKING THIS UP.
>> Rooney: WHAT IS THE
DIFFERENCE BETWEEN A
LUNCHEON AND DINNER, THE
WINE, YOU CAN BRING WINE
INTO THE HOSPITAL.
>> WE'RE TALKING ABOUT
BILLION DOLLAR COMPANIES.
>> YOU CAN'T BRING WINE IN.
>> Rooney: THAT'S THE KEY,
THAT'S THE KEY.
IF YOU DON'T SERVE WINE
COULD WE GO BACK AND DO
THIS.
>> FOOD, FOOD TALKS.
AND FOOD IS ABOUT AS
ESTABLISHED A RELATIONSHIP.
>> Rooney: WE DON'T HAVE
MUCH TIME T GOOD NIGHT.
CAN'T, WE WILL CONTINUE
THIS.
THAT IS IT FOR GREATER
BOSTON.
TOMORROW IT'S BEAT THE PRESS.
I'M EMILY ROONEY.
GOOD NIGHT.