A federal judge in New Hampshire late today struck down a controversial state law that banned companies such IMS Health and Verispan from data mining - gathering data from doctors and packaging for resale to drugmakers and others.

In a written opinion, U.S. District Court Judge Paul Barbadoro ruled the law “unconstitutionally restricted speech without directly serving the state’s substantial interests…(and) alternatives exist that would achieve the state’s interests as well as or better without restricting speech.” New Hampshire is the only state with such a law.

Authorities in the Live Free or Die state argued that the law was designed to protect the privacy of doctors, end inappropriate marketing of drugs to physicians and slash rising health care costs. Opponents say IMS, Verispan and other datamining companies provide crucial info to national research databases and that the law violates First Amendment free-speech protections.

The case was being closely watched across the country for its potential to set a precedent for other states, such as Nebraska, Nevada and Missouri, which have introduced similar bills. The law was conceived amid growing controversy over the interplay between doctors and drugmakers, and industry attempts to influence prescribing habits.

Upbeat IMS execs now hope this ruling will quash those other efforts. “We know some states are still considering legislation modeled on the New Hampshire law,” says Bob Steinfeld, IMS senior vp and general counsel. “This important decision by Judge Barbadoro clarifies that the Constitution protects the dissemination of provider-identifiable information, which is also vital to ensure patient safety and improve healthcare quality.”

Among the groups supporting IMS and Verispan with friend-of-the-court briefs were the Washington Legal Foundation, the National Alliance for Health Information Technology, Surescripts, the eHealth Initiative, the National Association of Chain Drug Stores and Wolters Kluwer Health.

Verispan vp Jody Fisher continues to maintain that patient privacy will be protected: “Patient privacy was never an issue in this litigation, as the information we collect does not identify individual patients. Our primary objective was to maintain transparency in the healthcare system, which is central to the efforts to improve quality of care in this nation.”

“We’re reviewing the decision and we’ll decide whether to appeal,” New Hampshire Attorney General Kelly Ayotte shrugs.

Story in The Associated Press;
Here’s the statement from IMS Health and Verispan.

Hat Tip to Pharm Aid[tags]IMS Health, New Hampshire, Verispan[/tags]