The UK Bribery Act and Foreign
Corrupt Practices Act (FCPA) are not the only regulations transforming pharma
in Europe. France recently adopted legislation similar to the US Patient
Protection and Affordable Care Act (which includes the “Sunshine Provisions”),
and the Netherlands is set to soon launch increased transparency rules.
Companies now face a multi-national shift towards improved aggregate Health
Care Provider (HCP) spend reporting clarity that raises the bar even higher
and, in turn, increases the potential for a breach in compliance.
Key European Industry Trends
Towards Operational Compliance
Comparisons between 2010 and
2011 results show that more European companies are enforcing corporate
standards for spending on HCPs, with 76% of 2011 respondents saying their
policies apply to all external partners and internal data, up from 62% in 2010.
Further, compliance professionals are more confident in their companies’
ability to meet transparency requirements, with 87% of 2011 participants saying
their ability to comply is Good or Excellent, an increase from 73% in 2010. 64%
of those polled in 2011 indicated that implementing a unique spend data
reporting and disclosure solution is “absolutely a requirement.” However, 44%
of the 2011 respondents reported that their companies are currently satisfying
existing reporting and disclosure requirements with spreadsheets and other
manual process, up a surprising 22% from 2010.
Europe’s Most Pressing Drivers
for Change
Data errors and system
shortcomings are key obstacles in 2011, which may be linked to a considerable
rise in inefficient reporting mechanisms. Specific difficulties include
struggling to connect a unique identification to HCPs from expense reports
(52%); incomplete spend and customer information (43%); and overall
system/process shortcomings (42%).
“Europe is at a pivotal moment
as it approaches an enforcement model increasingly similar to the US,”
explained Bill Buzzeo, Vice President of Global Compliance Solutions at Cegedim
Relationship Management. “Companies are making essential strides at
self-enforcement, but according to the 2011 survey, most respondents are
reliant on inefficient manual and Excel spreadsheet reporting mechanisms. These
companies should consider the robust capabilities of an automated Aggregate
Spend Transparency solution in order to transform the administrative duty of
compliance into a competitive business strategy.”
The survey was conducted in
November and December of 2011 by Cegedim Relationship Management, the leading
global provider of regulatory compliance, customer relationship management, healthcare
data, and marketing solutions to the Life Sciences industry.