Billions in drug and medical device company payments to medical specialists may compromise patient care, reports show

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Research shows that financial relationships with drug companies impacts decision-making in ways that benefit drug companies, including altering prescribing habits. (Photo credit: Unsplash)

U.S. medical specialists, from neurosurgeons to anesthesiologists and oncologists, received billions of dollars worth of individual payments not related to research from pharmaceutical and medical device industries in recent years, a series of new studies show.

The payments raise concerns among researchers and public health advocates about how industry influence may negatively impact patient care.

The American Medical Association’s “Sunshine Act data release: Talking points for physicians” suggests maintaining industry relationships, including company-funded medical education, does not necessarily mean that physicians’ judgment has been inappropriately influenced. 

However, evidence shows these types of non-research, direct-to-pocket relationships impact medical decision-making in ways that benefit drug and device companies. 

They have been shown to increase healthcare costs for consumers and lead to implicit bias, unconsciously influencing physicians’ behavior in favor of certain industry products and services that may not necessarily be good for patients’ health. They can alter prescribing habits, for instance, and also factor into decisions about which medical devices to use.

Drug and medical device manufacturers are required under the Physician Payments Sunshine Act to report payments, items of value, and investment interests worth $10 or more to healthcare providers. Some states, hospitals, and academic institutions have their own rules limiting certain industry gifts and payments, but there are no federal laws limiting what an individual provider may accept.

From 2020 to 2023 alone, the total value of pharmaceutical and medical device industry general (non-research) payments to physicians exceeded $8 billion in value, according to the Open Payments Database records categorized by stakeholder. The number of physicians receiving these payments also increased by 28% in that period.

‘We have a systemic problem.’

As these payments persist, experts continue to sound warning bells.

“The money is so tempting that, in some ways, I’m not surprised, and there’s no watchdog,” says Dr. Lisa Cosgrove of the University of Massachusetts-Boston, whose research focuses on ethical, medical, and legal issues in organized psychiatry due to academic-industry relationships. “We have a systemic problem.”

General payments can range from consulting and speaking fees to gifts, travel, and meals. They also include royalties and licensing fees from sales of drug and medical device products based on an individual’s intellectual property.

Pharmaceutical and medical device companies often make these payments to individual medical professionals as part of industry-sponsored promotional activities, advisory roles, or continuing medical education. This contrasts with funding from industry for medical research, which often goes to institutions.

Most medical specialists receive free samples, small gifts, and occasional meals. Still, even modest gifts—which represent the vast majority of general payments—can shape medical decision-making, Cosgrove says.

For example, a recent report published in the BMJ journal Heart shows doctors who received industry-sponsored meals with a median value per meal of $17 were more than twice as likely to prescribe a new heart failure drug to Medicare recipients. An increase in the number of free meals for doctors was also linked to more Medicare bills for this drug and higher costs, the study shows.

Industry ties undermine patient care and public trust, says Dr. Adriane Fugh-Berman, a Georgetown University professor and director of PharmedOut. The organization, a project of the Georgetown University Medical Center, educates healthcare professionals and students about pharmaceutical and medical device marketing practices.

“It’s a very bad system. Commercially-supplied information is always designed to advance commercial goals,” she says. “It’s not objective, and the best chance that physicians have of avoiding biased commercial information is avoiding contact with industry and industry-provided information. They shouldn’t take gifts of any kind, whether they are meals or money from these companies.”

Fugh-Berman’s research has shown that industry gifts of any size are associated with more expensive prescriptions and more branded prescriptions, as well as a greater number of drugs prescribed to a patient, increasing the risk of adverse effects. 

Consider:

While the average payment of $280 went down by about $100, the number of transactions and physicians who received payments went up, with the highest single payment at more than $34,000. Past studies have linked industry-funded meal payments to increased prescriptions of dupilumab.

“As the indications for dupilumab continue to grow, it is crucial for physicians to be aware of the magnitude of industry payments and the potential effects on physician prescription patterns and their recommendations to patients,” the researchers say.

The Open Payments database contains information about the financial relationships between drug and medical device companies and healthcare providers. Search for providers receiving payments, as well as companies that have made payments, and review and download data for up to five states at once. Watch a short video to learn more about how the program works, what’s in the data, and how to use the search tool. 

Reference

Elsamadicy AA, Cross J, Reeves BC, et al. Characteristics of reported industry payments to neurosurgeons from 2019 to 2022: The impact of COVID-19. Journal of Clinical Neuroscience. 2025;134:111089. doi:10.1016/j.jocn.2025.111089