June, 202019 Transparency in healthcareWorking for a healthcare company, I can say that nothing is as important to patients than their trust and confidence in the healthcare professionals treating them. It follows that patients should not be concerned that undisclosed conflicts of interest might be influencing their care and treatment. It is for this reason that in many jurisdictions transparency or "sunshine" laws have been enacted, under which healthcare companies are required to track and disclose "transfers of value" to healthcare professionals, including honoraria paid to healthcare professionals for provision of services to companies, training and education benefits, and incidental travel and hospitality. Many healthcare companies indeed advocated for these laws in recognition of the need to put the interests of patients first.Compliance codes of ethics and conduct in healthcareThe healthcare industry has been diligent in shaping voluntary codes of ethics and conduct around the world. Oftentimes, adherence to a code of ethics and conduct is a prerequisite to membership of an industry association. The value of companies signing up for a code of ethics and conduct is that it is a signal to their employees and external stakeholders of that company's commitment to doing things in the right way. Typically, the codes seek to lay out the acceptable behaviors from an industry perspective and to provide guidance as to why those standards are being put in place. It also means that companies in the industry are "playing by the same rules," and to reduce instances where one company secures an unfair advantage over its competitors by engaging in unethical and/or illegal conduct.What are some of the challenges that a business faces to understand the compliance dimensions of new technology?Healthcare companies invest significant sums in the development of new technologies with the clear objective of improving the health and welfare of patients. Traditional technology companies are also focusing more on healthcare. Innovation is the cornerstone of the industry. There is increasing deployment of technologies to monitor the medical conditions of large population groups with devices that can interrogate a patient's physical condition, anytime anywhere. Whilst the benefits of that may be clear, oftentimes, the legal and policy framework lags the innovation. It is, therefore, more important than ever that legal and compliance teams can identify the risks in advance and be able to advise the business on the existing legislative framework on a jurisdiction by jurisdiction basis. It is of paramount importance that business stays in compliance with the existing legal constraints. It cannot be forgotten that there is also an opportunity for industry associations to advocate for legislative change on behalf of their members where that is called for.What role does the Compliance function play a role in helping businesses steer ahead of the competition?Compliance can be a competitive advantage. The healthcare industry is highly regulated across all markets, and the trend globally is towards more and not less regulation. Companies need to rethink their business models and strategies, given the increased focus and attention on the healthcare industry.These changes are rapid and unpredictable, indicating a future that is more restrictive than permissive. Missteps can result in significant reputational risk for business and their employees. For those businesses that get it right, and having a reputation for doing the right thing, they will enjoy favored employer and supplier status.What is your advice to and entrepreneurs in this landscape?Entrepreneurs need to act within the existing legal frameworks. As their ideas gain traction, they will face increased attention, and with that comes regulatory oversight. Entrepreneurs need to have a clear ethical compass, they must want to do the right thing, and they must not let the ends justify the means. Entrepreneurs need to figure out what their key markets are, who they need to engage in those markets and to learn and understand the regulatory constraints to which they are subject. Rules are different in every jurisdiction, and business needs to be respectful of local laws and regulatory regimes.Concluding remarksIn our highly regulated environment, with the increasing expectations of regulators around the world for business to manage their compliance risks, there is increasing pressure on compliance teams. Technology can play a big part ­ in that it frees up compliance teams to focus on more "value-added" business counseling ­ but technology alone is not the answer to managing risk. Helping develop the culture of ethics and integrity is the fundamental role of the compliance team. That involves engaging with leadership and others throughout the business and encouraging them to look at the work they do through the lens of compliance. This is vitally important in those industries where innovation may be out-pacing legal frameworks that were designed for a different time. Campbell Clark
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