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Glaxo to change training-payment practices

Drugmaker GlaxoSmithKline P.L.C. yesterday announced changes in the way it pays for physician-training sessions and other practices that industry critics have derided as too cozy with the medical community.

Drugmaker GlaxoSmithKline P.L.C. yesterday announced changes in the way it pays for physician-training sessions and other practices that industry critics have derided as too cozy with the medical community.

Starting next year, the company with large Philadelphia operations will pay only academic, medical, and professional institutions to organize continuing medical-education sessions for physicians.

Glaxo is immediately ending its practice of paying event producers or other commercial providers to organize sessions. Medical professionals attend such workshops to update their licensing and other credentials.

By year's end, Glaxo said, it also would begin publicly disclosing all payments it makes to doctors. It is banning corporate political contributions, too.

The British company's announcement was the latest in a string of recent moves by pharmaceutical companies to combat growing public criticism that they have too much financial influence over the medical community.

In September 2008, drugmakers Merck & Co., and Eli Lilly & Co., said they would begin publicly disclosing payments to physicians.

"This is one more step in our efforts to be more transparent in the way we operate our business and interact with health-care providers," Deirdre Connelly, president of Glaxo North America Pharmaceuticals, said in a statement.

In January, Sen. Charles Grassley (R., Iowa) reintroduced the Physician Payments Sunshine Act, aimed at creating a registry to show which doctors had received fees from drug companies.

Glaxo spokeswoman Mary Anne Rhyne said the moves reflected the company's recognition "that there's been criticism" of industry practices.

David Grande, assistant professor of medicine at the University of Pennsylvania Health System, said he believed Glaxo's move was driven by a desire to head off federal action. But he called it "a step forward."

Glaxo said the change would reduce the amount of grant assistance available, in addition to limiting who is eligible. Drug companies have increasingly dropped sponsorship of such doctor-training events in recent years, meaning physicians and hospitals will have to pick up the tab.

"Continuing education need not occur in an expensive resort setting," said Dave Davis, senior director of continuing education and performance improvement at the American Association of Medical Colleges, which had advocated for some changes. "It may occur in the medical school auditorium."