The Senate Committee on Health and Demography on Tuesday urged stakeholders from the medical community for assistance in drafting a Philippine version of the United States' Stark Law, amid allegations of unethical practices of a local pharmaceutical firm.
Members of the panel, headed by Senator Christopher Lawrence Go, made the appeal during the public inquiry, in aid of legislation, on Bell-Kenz Pharma Inc., which is primarily owned by doctors.
"We can start crafting our own version of the Stark Law. Dapat bawal po itong mag-refer ang doktor sa mga entities kung saan may financial relationship sila. Katulad nitong Bell-Kenz puro doktor pa din ang mga myembro (Doctors should not be allowed to refer to entities where they have a financial relationship. Like Bell-Kenz, all members are doctors). It's high time that we craft a new law with stiffer and higher penalties," Go said.
Senator Raffy Tulfo agreed after bringing to the panel's attention that existing penalties for unethical practices in the medical industry are not enough.
"I believe there is a need to put stiffer penalties for these unethical and immoral acts. They must be declared illegal," Tulfo said.
The Stark Law is a set of US federal laws that prohibit physician self-referral of Medicare or Medicaid patients to entities for designated health services if the physician has a financial relationship with that entity.
The Senate Committee on Health and Demography chaired by Senate Christopher Lawrence Go (right) probes Tuesday (April 30, 2024) the alleged multi-level marketing scheme and collusion between pharmaceutical firm Bell-Kenz Pharma Inc. and doctors on the prescription of medicines, with resource persons Health Secretary Teodoro Herbosa (left, upper photo) and company chairperson Luis Raymond Go (4th from left, upper photo) among the resource persons. Senators vowed to go to the bottom of reported unscrupulous practices that place indigent Filipinos at a disadvantage while Luis Go denied the "baseless allegations" and reaffirmed their "unwavering commitment to integrity and compliance." PNA
Alleged unethical practices
During the resumption of the regular session on Monday, several senators expressed their concern about the alleged unethical practices within the medical community supposedly involving Bell-Kenz Pharma.
In a privilege speech, Senator Jinggoy Estrada alleged that the company engages in a multi-level marketing (MLM) scheme to distribute its products, including anti-hypertensive, anti-diabetic, antibiotic products, and health supplements nationwide.
He said the company’s officers, Luis Raymond Go as president, Alina Fatima Hojilla as vice president, Joseph Vincent Go as corporate secretary, Jaime Cayetano Jr. as treasurer, and 58 other stockholders are doctors from different parts of the country.
Estrada further alleged that despite the existing ethical guidelines that permit doctors to receive gifts of reasonable value, Bell-Kenz goes beyond these limits by offering excessive cash incentives and expensive vehicles to doctors who prescribe their medicines.
Bell-Kenz denies allegations
Dr. Go, who attended the public inquiry, denied the allegations, and reaffirmed the company's integrity and compliance.
"We are a law-abiding pharmaceutical entity diligently adhering to all regulations set forth by FDA (Food and Drugs Administration), SEC (Securities and Exchange Commission), PMA (Philippine Medical Association), and other relevant government bodies," the Bell-Kenz president said.
He also refuted claims that Bell-Kenz member-doctors are receiving commissions depending on the volume of their prescriptions, saying the checks shown to the Senate panel as pieces of evidence were "rebates for early payment."
Dr. Go also clarified that the luxury cars of some of their members, which were also presented to the panel, are not gifts from the company.
The Department of Health is currently conducting an investigation on the alleged unethical practice of Bell-Kenz, and senators urged the PMA and the Professional Regulation Commission to also conduct their own investigation on the matter. PNA
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