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Stimulus rules could slow down prescription data mining business

For years now, so-called "data mining" companies--such as IMS Health and Verispan--have sold data on physicians' prescribing patterns to pharmaceutical companies. Several states have tried to outlaw aspects of the practice, with mixed degrees of success.

The data miners, which also include CVS Caremark and Walgreens, have fought back with all of the legal resources at their command, and in some cases they've managed to get state laws restricting data mining overturned.

Now, however, they're up against the federal stimulus law, which will impose more restrictions on the medical data mining industry, including more rules on using private information without patients' consent. Civil penalties violations will be tougher, as well. The industry is holding its breath at the moment, as government agencies are still writing new regs called for in the law.

But it is worth noting that the stimulus law has already put tough new protections for personal health in place, with the rare exception or two for research and public health measures, like allowing for disease surveillance. Seems to be that the data miners have reason to be afraid.

To learn more about the implications of the stimulus law for data miners:
- read this piece from The New York Times

Related Articles:
Prescription data miners seek VT injunction
Federal appeals court upholds NH data mining ban
DC considers pharma rep licenses, data mining limits

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Comments

Milt has been at the NY Times so long he's lost his edge. His article confuses personal data with anonymized personal data; the former is addressed in the stimulus bill and the latter is not. In fact, if the Obama Administration wants to get all those best practices, anonymized data is an essential ingredient so don't expect to see it impacted anytime soon. The IMS/SDI/WK crew largely relies on anonymized data so they are OK; its the folks selling patient marketing programs who are more exposed, though the HIPPA statutes specifically allow healthcare payers to see the data of its members, so presumably the payers can still drive patient education programs

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