FCPA Risk in the Healthcare Sector

Healthcare is among the most penalized sectors when it comes to FCPA enforcement. Pharmaceutical, medical supply, and medical technology companies face extensive exposure to government officials due to high volumes of sales to government end-users and a heightened need for regulatory approvals. In addition to these typical FCPA risk factors, the healthcare sector presents unique risks. The DOJ and SEC pursue FCPA cases on the principle that healthcare practitioners (HCPs) in state-run healthcare systems should be considered “foreign officials” subject to the statute’s restrictions.

This extension of the “foreign official” designation creates two related problems. First, the overlap between public and private spheres makes it difficult to determine who such government-connected HCPs are. Second, because HCPs themselves often have multiple affiliations, identifying and mitigating against potential channels of illicit payments can be difficult

PSA has created a brief exploring the challenges that these dynamics present to conducting due diligence on third parties in the healthcare sector.

Download Whitepaper

PSA Due Diligence

With more than twenty years of global experience, PSA has deep experience in due diligence, completing due diligence assignments in more than 100 countries each year.

Learn more about PSA due dilligence Get in touch with us
Other Services

Investigations

Advisory

Featured insights
FCPA Risk Overview: ASEAN-5

Early 2022 has seen several economies have gradually opening with the shift in their management of the COVID 19 pandemic. ASEAN 5 are on course for continued economic recovery with most reliable regional projections anticipating expanded GDP in 2022. With this ASEAN’s economic outlook remains positive, locking in Southeast Asia’s...

The New Global Sanctions on Russia

The terrible events in Ukraine over the past three weeks have led to what today’s guest has called “the most significant implementation of sanctions that has ever occurred.”  These sanctions are fast moving, multilateral, and create a complex web of individual overlapping regimes which cut deep into the Russian economy....

FCPA Risk Overview: Latin America

Latin American countries have presented significant FCPA risks in recent years. Of the 82 FCPA cases settled in the last five years, 31 have involved the top five Latin American economies: Argentina, Brazil, Chile, Colombia, and Mexico.  PSA’s new regional FCPA Risk Overview provides a data-driven survey of corruption risks and FCPA enforcement...

How can we help you?

Get in touch with us or inquire with our experts.

Subscribe to receive updates and insights

Better Intelligence Podcast

Copyright © 2022 Pacific Strategies and Assessments | All Rights Reserved