Complying with the Foreign Corrupt Practices
Act in the Global Healthcare Industry
Colleen A. Conry
ABSTRACT: The U.S. Department of Justice (DOJ) has begun carrying
through on its promise to apply greater Foreign Corrupt Practices Act (FCPA)
enforcement attention to the pharmaceutical and medical device industries.
Thus, global healthcare participants should be conscientious about complying
with the FCPA, a law that prohibits the direct or indirect offering or payment
of anything of value to a foreign official for the purpose of obtaining or keeping
business. Hospitals, medical device companies, and pharmaceutical companies
should be aware that the U.S. Securities and Exchange Commission (SEC) and
the DOJ have interpreted the meaning of foreign official to include physicians
and employees of state-owned or controlled hospitals. In addition, the SEC and
DOJ have included common marketing incentives in their definition of anything
of value, such as travel, lodging, entertainment, and small gifts. In light of recent
enforcements, healthcare participants should conduct diligence upon the types
of payments made to potential foreign officials, including a thorough review of
global marketing strategies.
KEYWORDS: Foreign Corrupt Practices Act, Bribery, Foreign Official,
Anything of Value, Diligence, Third Party, Travel, Lodging, Gifts, Entertainment,
COLLEEN A. CONRY, ESQUIRE, is a partner at Ropes & Gray, LLP. She formerly
served at the U.S. Department of Justice in the Fraud Section of the Criminal
Division and in the Commercial Litigation Branch of the Civil Division. Contact
her via email at Colleen.Conry@ropesgray.com.
Amanda Raad and Nicole Tuchinda, associates at Ropes & Gray, made significant contributions to this article.
CITATION: Colleen A. Conry, Complying with the Foreign Corrupt Practices Act in the Global
Healthcare Industry, J. HEALTH & LIFE SCI. L., April 2010, at 1. © 2010 American Health
Lawyers Association, www.healthlawyers.org/JHLSL. All rights reserved.