New law in Minnesota for Doctors

Interesting:

CHICAGO (Dow Jones)--Pity the Minnesota cancer doctors who journeyed to a big medical meeting here: some drug companies are denying them free food and trinkets, citing a state law limiting such gifts.
It's a custom for drug companies to set up extravagant exhibit booths at major medical meetings like the annual gathering of the American Society of Clinical Oncology, which runs through Tuesday. To encourage doctors to prescribe their drugs, the corporate booths often feature free espresso bars and pens emblazoned with product logos.
At this year's ASCO, doctors were lining up 15 deep to get a taste of frozen yogurt offered by Indianapolis drug maker Eli Lilly & Co. (LLY), enjoying a break from the information overload of clinical trial presentations. But like a convenience-store warning against underage cigarette purchases, the Lilly booth had a sign that meant no yogurt for some doctors.
The sign said Lilly wouldn't provide food, beverages or meals to doctors from Minnesota "in order to comply with Minnesota statutes," or to government employees from New York, in order to comply with laws there.
Across the aisle, Swiss drug company Novartis AG (NVS) was giving away soapstone bowls carved in Kenya as part of Novartis's support of a non-profit group that promotes economic growth in developing regions. But the sign said Minnesotan doctors, members of a Medicaid committee and employees of state and federal entities "may be subjected to restrictions on acceptance of food, beverages or items."
They're signs of the times in the beleaguered pharmaceutical industry. In recent years, some state governments have cracked down on drug makers' sales and marketing practices. Lawmakers fear that certain sales tactics are swaying doctors to prescribe drugs that might not be medically necessary - or might have cheaper alternatives - which in turn contributes to ballooning costs for state health plans.
A Minnesota law, first enacted in the 1990s and tweaked by state officials a few years ago, prohibits drug companies from giving gifts to physicians with a combined value of more than $50 per year. The law allows for compensation of doctors for consulting and other services and has other exceptions.
Lilly has posted similar warning signs on its freebie booths for the past three years, spokeswoman Amy Sousa said. "We want to make sure we're doing all the right things according to state regulations," she said.
It's unlikely a single cup of frozen yogurt would crack the $50 Minnesota threshold. But Sousa suggested it's better for Lilly sales reps to keep track of items given to doctors they call on, rather than try to track the giveaways at a large conference.
So have any doctors from the Land of 10,000 Lakes been turned away? "Not to my knowledge," Sousa said. Some doctors may have stayed away on their own when they saw the sign, she said.
If they were turned away, they could probably go elsewhere for free stuff - similar warning signs weren't visible at all drug makers' freebie booths.
For the record, this reporter, who is neither a doctor nor a Minnesotan, declined the Novartis bowl but accepted Lilly's yogurt.
-By Peter Loftus; Dow Jones Newswires