Section 5: Financial Arrangements with Healthcare Professionals and Healthcare Organisations

Companies are responsible for ensuring consulting arrangements are consistent with the following:

1. A legitimate need for the services should be clearly identified in advance of approaching prospective consultants.
2. Records of the agenda, services provided, and contractual arrangements should be maintained by the Company, including meeting minutes (for an advisory board).

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5.1 Remuneration

1. Companies are responsible for ensuring that all transfers of value are reasonable, appropriate, and balanced when considered in context.
2. Any remuneration for services rendered should not exceed that which is commensurate with the services supplied.
3. A payment (including donations to charities or societies) must not be made to a healthcare professional as an incentive or in return for their attendance at an educational event or trade stand. Sponsorship to enable attendance at an educational event may be provided.
4. Financial or in-kind support must not be conditional on the use of a specific product (this excludes clinical research).
5. All transfers of value should be reported in accordance with this Code.

5.2 Grants, and Other Financial and In-kind Support

A Company may provide a grant, financial or in-kind support for a healthcare professional, medical practice, hospital, institution or health-related organisation:

• to improve patient outcomes.
• to implement a quality use of medicine program; or
• for education, training or academic purposes; or
• for medical research; or

1. It is recommended that a grant or financial support should be paid to a medical practice or health-related organisation, rather than paid directly to an individual healthcare professional. A payment to an individual healthcare professional may create the impression that the purpose is not related to the quality use of medicines, education, research or improving patient outcomes.
2. A grant, financial or in-kind support must not be provided to underwrite a commercial business, generate income or pay for business operating costs for a practice or institution. Payment of an employee’s salary, in part or full, is only acceptable to support a project or program for a defined period.
3. Clear guidelines which can be publicly disclosed if required must be developed in relation to the awarding of grants, financial and in-kind support.
4. A Company may temporarily loan a piece of equipment to a medical practice or health-related organisation, provided it facilitates the quality use of medicines and the company has a mechanism for retrieval of the equipment.
5. Items provided on permanent loan to a medical practice or health-related organisation could be regarded as a gift.