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US Court Upholds Law Prohibiting Sale of Doctor-specific Prescription Data
The sale of prescription data, though with the patients’ identities been removed, has become a lucrative industry in the US. The information is purchased from pharmacy chains and the companies that manage drug benefits for employers.
By purchasing the data describing which doctors prescribe what drugs, pharmaceutical sales forces are better able to identify which doctors might use their products and be receptive to their sales pitches. They can also focus on persuading doctors who do not write many prescriptions for their products to change their minds.
Two large data-mining companies, IMS Health and Verispan had sued in 2006 to block implementation of the New Hampshire law that came in the way of their business.
The law was intended to cut down on state health care costs by eliminating the tool used by drug sales representatives in promoting brand name drugs.
Saying in Tuesday’s opinion that the enterprise of buying and reselling prescription information was “mind-boggling” in its scope, United States Court of Appeals Judge Bruce Marshall Selya wrote, “The record contains substantial evidence that, in several instances, detailers armed with prescribing histories encourage the overzealous prescription of more costly brand-name drugs regardless of both the public health consequences and the probable outcome of a sensible cost/benefit analysis.”
The three-judge panel concluded that “the state adequately demonstrated that the Prescription Information Law is reasonably calculated to advance its substantial interest in reducing overall health care costs within New Hampshire.”
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