Happened to read this today. Is is about products, not services, but speaks to some of the questions raised.
Physicians Selling Products: Legal and Ethical Considerations
By Ericka L. Adler | February 8, 2012
As physicians look for ways to improve their bottom line, many are looking to alternative sources of revenue through the sale of products such as vitamins, creams, and diet supplements. Most physicians seem to believe that if the item is not covered by Medicare, there are no restrictions. This is simply not true.
Although many individuals are smart consumers, some patients will willingly purchase a cream recommended to reduce wrinkles or a nutritional supplement, whether needed or not, if a physician recommends it. Perhaps this is because of trust in their physician?s recommendation or maybe they?re too uncomfortable to refuse.
Before selling any product, physicians must consider all legal and ethical limitations. Under the AMA Code of Medical Ethics, Opinion 8.063, which addresses the sale of non-prescription products that provide a ?health? benefit, the AMA raises several concerns about products sold to patients, such as whether it creates a financial conflict of interest; places undue stress on the patient; erodes patient trust; or undermines the primary obligation of physicians to serve the interests of patients before their own. These concerns exist not only when a physician dispenses items in exchange for money, but also when he or she endorses a product that the patient may order or purchase elsewhere which results in remuneration for the physician.
In its guidance, the AMA states physicians should not sell health-related products whose claims lack scientific validity and should rely on peer-reviewed literature and unbiased scientific sources to review products. Additionally, physicians must take steps to minimize financial conflicts of interest by disclosing financial arrangements with a manufacturer or supplier and by letting the patient know where else the products can be obtained.
With regard to selling non-health related goods, the AMA also provides guidance under opinion 8.062 which indicates a physician may sell low-cost non-health-related goods for the benefit of community organizations, provided that: (1) the goods in question are low-cost; (2) the physician takes no share in profit from their sale; (3) such sales are not a regular part of the physician?s business; (4) sales are conducted in a dignified manner; and (5) sales are conducted in such a way as to assure that patients are not pressured into making purchases. It should be noted that AMA guidance is intended to apply whether the products are sold in the physician?s office or through a practice website.
