HC insurers and pillmakers, take a sigh of relief; at least used car salesmen and PBMs weren't on this poll!

From John Curry, June 28, 2008

Retirees....five years ago, when I started distributing articles like this, I actually had reply emails that were defending these folks! It looks like the public finally has taken off the rose-colored glasses and is now cognizant of the many hundreds of "out-of-court" and a few in-court settlements against some of the "good" folks listed in the table below (and the PBMs), doesn't it? Is the American public finally waking up and smelling the bacon? I think so! Sure, there are a lot of good companies out there...but there are also too many of the other persuasion! That's why they make Congressional inquiries, ombudsmen, consumer advocates, attorney generals, grand juries and trial lawyers.....yes, trial lawyers! Could it be that too many peoples' oxen have been gored? We'll find out in November, won't we? John

www.pharmalot.com

Pharma’s Reputation Sinks A Little More

By Ed Silverman

June 27th, 2008

The latest Harris Interactive poll that examines American attitudes toward corporate America offers a sobering view of and for the pharmaceutical industry. Only 26 percent of Americans view the industry favorably which, of course, means that 74 percent have a negative or neutral impression. And 52 percent are firmly negative, which places pharma slightly below big oil, and above tobacco.

Bob Ehrlich of DTC Perspectives notes the warning signs: “The drug industry must decide what improving their reputation is worth. They could accept the second lowest ranking or decide how to make it better. Clearly their current approach has fallen short and anyone charged with making it better has largely failed, unless the goal was a controlled decline. I know all the good things the drug companies do, and why prices are higher, but you need not convince me.

“It is the 74 percent of Americans who do not like you that need the convincing. Will it happen? Maybe it will if a bunch of new wonder drugs get discovered or if prices are drastically reduced. Otherwise,” he writes, “do not look for the second-to-last reputation spot to be vacated soon. It is a challenge that must be dealt with by the ceo’s or they risk significant legislative and public backlash.” [Click image to enlarge]

Of course, this is not new. Unfortunately, the industry has been slow to respond these past few years and only recently has shown signs that the message has been received. Bob makes an important, however, which is that the ceo’s must deal with this. Ironically, most ceo’s are increasingly remote and, when they do appear, rarely deviate from a carefully controlled script. So here’s a hint to the ceo’s - tell the lawyers to relax and go engage your customers in a series of candid discussions.