The relationship between healthcare companies and physicians is complex, presenting potential conflicts of interest that require oversight. Biopharmaceutical and medical device companies operate in a highly competitive market. As a result, some companies may seek an advantage by extending gifts or other inappropriate inducements to healthcare professionals to promote a specific drug or medical equipment. This practice hurts ethical enterprises seeking to grow local operations or engage in cross-border trade. It stifles the ability of small and medium enterprises (SMEs) to invest their limited resources in health innovation. And it can result in higher costs for patients
SMEs most impacted by corruption
More than USD 1 trillion dollars are paid in bribes every year by the private sector, according to the World Bank Institute. Moreover, small and medium enterprises pay a much higher percentage of their annual revenue to bribes than large companies. More than 70 per cent of SMEs in economies transitioning to a market-oriented environment perceived corruption as an impediment to their business.