Insys Therapeutics Corporate Integrity Agreement: Understanding the Terms and Implications for the Company
Insys Therapeutics, a pharmaceutical company based in Arizona, has been under scrutiny for its marketing practices resulting in the opioid epidemic. In 2019, the company entered into a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General (OIG). The agreement aims to ensure that the company conducts its business according to laws and regulations and promotes ethical practices. In this article, we will take a closer look at the Insys Therapeutics Corporate Integrity Agreement, its terms, and implications for the company.
What is a Corporate Integrity Agreement?
A Corporate Integrity Agreement is a contract between a company and a government agency, usually the OIG, that outlines the terms and conditions that the company must follow to ensure compliance with all laws and regulations. CIAs are typically imposed on companies that have engaged in unlawful or improper activities. The agreement usually lasts for a set period, and the company is required to report regularly to the OIG on its compliance efforts.
Insys Therapeutics Corporate Integrity Agreement Terms
The Insys Therapeutics CIA is a five-year agreement that started on June 4th, 2019. Under the agreement, the company must comply with strict requirements, including:
1. Establishing a Compliance and Ethics Program: Insys must establish a comprehensive compliance program that includes written standards, policies, and procedures. The company must also appoint a compliance officer who has the authority to monitor and enforce the program.
2. Training Employees: Insys is required to train all employees, including executives, on the CIA and the company`s new compliance program. The training should cover topics such as healthcare fraud and abuse laws, marketing practices, and compliance with the Anti-Kickback Statute.
3. Independent Review: Insys must retain an independent review organization to conduct annual reviews of the company`s compliance program. The review organization will report its findings to the OIG and Insys.
4. Reporting Obligations: Insys must report any potential misconduct or violation of the CIA to the OIG promptly. The company must also provide the OIG with regular reports on its compliance efforts.
Implications of the Insys Therapeutics CIA
The Insys Therapeutics CIA has significant implications for the company. The agreement requires Insys to be transparent in its business practices, follow all laws and regulations, and implement an effective compliance program. Failure to comply with the CIA can result in severe consequences, including exclusion from participation in federal healthcare programs.
The CIA also demonstrates the US government`s commitment to combatting the opioid epidemic and holding pharmaceutical companies accountable for their actions. Insys and other companies must understand that unethical and illegal practices will not be tolerated, and they will face significant consequences.
Conclusion
The Insys Therapeutics Corporate Integrity Agreement is an essential step towards ensuring transparency, compliance, and ethical business practices in the pharmaceutical industry. The agreement requires Insys to establish a comprehensive compliance program, train employees, undergo independent reviews, and report any potential misconduct to the OIG regularly. Companies must understand that violating regulations and laws comes with severe consequences and that the government is committed to holding them accountable. Through this CIA, the government aims to promote transparency and reduce the opioid epidemic`s impact on communities across the country.