Combating Fraud Remains a Key Concern
Fighting fraud continues to be a major healthcare priority. Although many of the recent cases have involved big pharma, medical device companies are on the government's radar. Device makers need to be acutely aware of what’s happening within their organizations, because most fraud cases are initiated by whistleblowers. According to Michael Sullivan, partner at Ashcroft Sullivan LLC (Boston), a recent study found that 70% of employees are more likely to report a problem to the government first than to their own company. For this reason, Sullivan, a former U.S. Attorney for the district of Massachusetts, advised attendees at MDMA’s annual meeting in Washington, DC last week that it’s critically important to know their industry as well as their company’s risk profile—it’s people, culture, and systems. One of the best ways to prevent fraud within a company is to establish an effective compliance program that stresses using systems and technology to control and monitor activities, advised Michael Bell, president of R-Squared (Princeton, NJ). “A strong program can be the difference for whether a prosecutor pursues a case,” said Bell. He emphasized the importance of doing things right the first time around and making sure that your compliance program is up to par. Some of Bell’s tips for best compliance practices: • Have more of the company's board and senior management involved. • Place more emphasis on process standards and benchmarking. • Embed compliance into business workflow (as opposed to using a stand-alone compliance program). • View compliance as a continuous business improvement process that has a true return on investment. • Prioritize financial relationships with referral sources (consulting relationships, educational and research grants, emerging state laws, and aggregate spend).
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Good short article but advice

Good short article but advice appears geared to defensive measures. Can more be shared about the types of issues encountered, allowing readers to anticipate preventative measures?

None of this bureaucratic

None of this bureaucratic mumbo jumbo is key to anything. Some of it is necessary, but if left to the bureaucracy, it will stifle innovation and efficiency and not lead to real safety.

Being open, honest and ethical and hiring open, honest and ethical people is the key. If all you care about and emphasize with your people is how smart you are and how much money you can make, you don't belong in medicine and are headed for a fall. You can't hide your deceptions forever.