Corporate Compliance

CMS rule would make drug, device makers' payments to doctor's transparent

Compliance Monitor, December 21, 2011

The Centers for Medicare & Medicaid Services released on December 14 its 121-page proposed rule designed to reveal potential conflicts of interest between drug, biological, and medical device companies and the physicians and teaching hospitals that prescribe and use them.

The proposed rule, called the Physician Payment Sunshine Act, was required by Section 6002 in the Affordable Care Act. The rule would require approximately 150 manufacturers of drugs or biologics, 1,000 makers of medical devices or medical supplies, and 420 group purchasing organizations to report payments to physicians and teaching hospitals. Examples of such payments include gifts, fees, meals, and travel expenses.

The Affordable Care Act provides that violators of the reporting requirements will be subject to civil monetary penalties (CMPs), capped at $150,000 annually for failing to report, and $1,000,000 for knowingly failing to report.

Editor's Note: This article has been adapted from an article originally published on the HealthLeaders Media website.

Most Popular