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00:00In this video, we're going to explain how Big Pharma buys your healthcare data and uses
00:05it to target doctors who don't prescribe their drugs.
00:10It sounds like a HIPAA violation.
00:13Insurance companies are selling your healthcare information to pharmaceutical companies so
00:17they can target your doctor.
00:19It's legal because they remove your name and replace it with a number.
00:23They know your age, your sex, your medications, your hospitalizations, your illnesses, and
00:29the zip code where you live.
00:32But as long as your name isn't attached to that information but you're identified by
00:36a number that's considered anonymized, patient-level information and that is compliant with HIPAA
00:44laws.
00:45The prescription data sold by pharmacies de-identifies patient information and replaces doctors'
00:51names with their license numbers.
00:53But here's the key.
00:54The American Medical Association sells access to its Physician Master File, which
00:59contains the license information for nearly every doctor in America.
01:04This gives drug companies everything they need to connect doctors to their prescriptions.
01:08They know exactly what they're prescribing and they also know what they're prescribing it
01:14for because your insurance company sells your health information to these health information
01:21organizations as well.
01:23There's a $9 billion industry called Healthcare Commercial Intelligence that buys all this information
01:29from insurance companies and pharmacies and puts it together in one easy-to-use database.
01:35Drug companies subscribe to these databases and use the information to make inroads either
01:40in a new market or with a new drug.
01:43Definitive Healthcare, for example, sells itself as having all the answers to pharmaceutical companies'
01:48most important questions.
01:49How do you find the physicians who can prescribe your drug?
01:53Who are the key decision makers at your target account?
01:57How big is the market for your new device?
01:59Definitive has profiles on more than 2.6 million physicians, nurses, and other healthcare professionals,
02:06as well as billions of insurance claims on hundreds of millions of patients.
02:11The company updates its database daily.
02:14The physician profiles include clinical activity level, prescription activity level, and their
02:19propensity to prescribe brand name over generic drugs.
02:23So when a drug rep walks into a doctor's office, they have the doctor's profile in hand and a custom
02:28sales pitch based on their patients' data.
02:31I started practicing 30 years ago.
02:33And even back then, the pharmaceutical companies could buy vendor data.
02:37They knew what your prescribing practices were.
02:40And they would use that to target specific medications, specific physicians based on prescribing
02:47patterns.
02:48Dr. Ami Bera has a unique perspective as a medical doctor and as a member of Congress.
02:53It could be used for good if you're not using the medications correctly or it seems like you're
02:58an outlier in those medications.
03:00I'm going to guess most of the time it's used to market those medications and try to get you to switch
03:05from one, let's say, antihypertensive to a different one.
03:09According to a 2022 report from the cloud software company Viva, 60% of healthcare providers meet with
03:15drug reps.
03:16Dr. John Dombrowski, an anesthesiologist based in Washington, D.C., counts himself among
03:20that crowd.
03:21How does that make you feel knowing that the drug rep knows exactly what you've been doing lately?
03:26I mean, that makes me a little uncomfortable.
03:28It seems like Big Brother.
03:29I did not consent to that.
03:31I did nothing about this.
03:32This is all kind of being vacuumed up.
03:35It's very sad that, you know, the American Medical Association is then making profit off
03:40my data that I didn't consent to that they can then sell to Big Pharma.
03:44And what are you trying to get out of a drug rep and your interaction with a drug rep?
03:47What are you hoping to learn?
03:48Basically, I learn as much as I can.
03:50Obviously, I go to meetings.
03:51I have journal club.
03:53And maybe there's a new medication out there that I may not know about that I would certainly
03:57listen to them.
03:58They can leave a leave behind.
03:59Obviously, I know from a drug representative, they're here to push a product.
04:03I know what they're selling and you should always be aware of that.
04:07But just because there's a new product out there doesn't mean it's good or bad.
04:10It means I should take a look at it to see maybe there's something I'm missing.
04:14And that's appropriate.
04:16Pharmaceutical companies spend billions of dollars a year on what's called prescriber detailing,
04:20which is face-to-face sales meetings.
04:22One of the most popular ways to do that is with a meal.
04:26Drug reps take doctors out to dinner or deliver lunch to their office.
04:29In exchange, the doctor listens to the sales pitch while they eat.
04:33Some doctors have become so fed up with drug reps that they either won't meet with them
04:37or have time limits.
04:39Some hospital systems have banned them entirely.
04:42Did you ever have an interaction with a drug rep where it seemed like they might have been
04:44pressuring you?
04:45You know, I never felt pressure.
04:48But again, I think they're doing their job, which is selling their medication.
04:52I think we have to do our job and I think we could do a better job educating medical students
04:57in residency to understand what the real world is going to be like.
05:01So our job is to push back, ask questions, gather information, but then make the most cost-effective
05:07decisions.
05:08This is all allowed under the Health Insurance Portability and Accountability Act of 1996,
05:13or HIPAA, which was written to protect private health information.
05:17HIPAA works by saying to the doctors and the hospitals and the health insurers, here's
05:22a bunch of rules that you have to follow about this data, no matter what the patient says.
05:26The patient gets these rights just by existing.
05:29They don't have to agree to anything.
05:31HIPAA only applies to personally identifiable information, so insurance companies can legally
05:37de-identify information and sell it.
05:39There are two ways to de-identify data, the expert method and the safe harbor method.
05:45The expert method is pretty simple.
05:46An expert must examine the data to ensure there is a very small risk a company could figure
05:51out who it is.
05:53The safe harbor method requires the removal of 18 identifiers, including name, zip code, telephone
05:58numbers, email addresses and social security numbers.
06:02According to the Department of Health and Human Services, de-identified health information
06:06created following these methods is no longer protected by HIPAA.
06:10But they wrote it and said if you go through this de-identification process, essentially
06:14as long as it's still de-identified, you can do whatever you want with the data.
06:17So nobody in that chain knows that you were one of the 400 patients that the doctor prescribed
06:24for any drug.
06:25So the patient data isn't a part of this.
06:29Insurance companies spell out exactly what they do in their disclosures, it's just so
06:33few people read them.
06:35Take Cigna as an example.
06:37Their Notice of Privacy Practices states, in some circumstances we may use your protected
06:41health information to generate aggregate data or summarize data that does not identify
06:46you to study outcomes, costs and provider profiles and to suggest benefit designs for
06:51your employer or health plan.
06:53These studies generate aggregate data that we may sell or disclose to other companies
06:57or organizations.
06:59United has a very similar disclosure.
07:01Their Notice of Privacy Practices states, we may collect, use and disclose health information
07:06needed to operate and manage our business activities related to providing and managing your health
07:10care coverage.
07:11We may also de-identify health information in accordance with applicable laws.
07:16After that information is de-identified, the information is no longer subject to this
07:20notice and we may use the information for any lawful purpose.
07:24Is that a sufficient disclosure in your mind?
07:26I mean that almost exactly word for word tracks the rules pretty much.
07:31SAN reached out to the major insurance companies, health care, commercial intelligence providers
07:35and the nation's largest pharmacy chains.
07:37Despite multiple inquiries, these household names including United, Cigna and CVS never returned
07:43our calls or emails.
07:45But one of the nation's leading privacy and cybersecurity attorneys pushed back on the idea that selling
07:50data is inherently bad.
07:52This idea that your privacy is being violated because your data in an anonymous, de-identified
07:58format is being used for other purposes, there's a disconnect there.
08:03I mean it's a little hard to frame what your privacy interest is in having data that none
08:09of the recipients know is about you.
08:11Nara explained how this practice could help lead to better care for patients because it helps
08:16all health care professionals track what works and what doesn't.
08:20You want to be able to follow a patient across a journey.
08:24I don't care that it's you.
08:26I just need to know that it's the same patient who had this diagnosis on this day, this test,
08:31this procedure, this, you know, whatever they're going to do and had that result.
08:36I need to know that it's the same person in order to evaluate whether it's working and
08:40whether you're doing that across the healthcare system.
08:42I've practiced in 150 specialty medical group.
08:45We would want to have the information to get a sense of how are doctors prescribing, what
08:50are they prescribing, how are they using their medications, so that we could actually
08:55take that feedback and give it back to our doctors, compare them to a panel of their peers
09:01and see where they're at.
09:03That I think is all valuable information, but that's not the pharmaceutical company.
09:08That's the medical group.
09:09That's the hospital system per se.
09:13Interactions between drug reps and medical professionals have changed since the turn
09:16of the century.
09:17In 2002, the Pharmaceutical Research and Manufacturers of America created a code to police interactions
09:22between reps and healthcare professionals.
09:25The self-imposed rules were updated in 2009, further restricting gifts and meals.
09:30For more coverage of the healthcare industry, head to san.com or download the Straight Arrow
09:35News app and search healthcare.
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