January 17th, 2012

The Obama administration will soon issue guidelines to drug companies that require them to disclose payments they make to doctors for “research, consulting, speaking, travel and entertainment,” reports the New York Times.

Under the health care reform law, these guidelines were supposed to be in place by October 1.

Analyses by The New York Times and others have found that about a quarter of doctors take cash payments from drug or device makers and that nearly two-thirds accept routine gifts of food, including lunch for staff members and dinner for themselves.

Companies will be subject to a penalty up to $10,000 for each payment they fail to report. A company that knowingly fails to report payments will be subject to a penalty up to $100,000 for each violation, up to a total of $1 million a year.