Manufacturers to Disclose Physician Payments Starting in August

computerBeginning in August, drug and device manufacturers will have to begin disclosing all payments and compensation to physicians and teaching hospitals in compliance with the National Physician Payment Transparency Program, a provision of the Affordable Care Act. 

The information is set to be made publicly available by September 30, 2014 on a website operated by the Centers for Medicare & Medicaid Services. 

The information database is part of an effort to combat conflicts of interest and corruption within the financial relationships between doctors and manufacturers, and comes at the heels of a 2010 effort by nonprofit media organization ProPublica called Dollars for Docs. 

The new federal database will require the following:

  • Applicable manufacturers of covered drugs, devices, biologicals, and medical supplies to report payments or other transfers of value they make to physicians and teaching hospitals.
  • Applicable manufacturers and applicable group purchasing organizations (GPOs) to report certain ownership or investment interests held by physicians or their immediate family members.
  • Applicable GPOs to report payments or other transfers of value made to physician owners or investors if they held ownership or an investment interest at any point during the reporting year.

This provision will allow physicians and teaching hospitals to access their data prior to it becoming publically available, as well as initiating and resolving data disputes through a registration process on-site. 

Through the transparency of financial ties and relationships between physicians and manufacturers, lawmakers hope to avoid inappropriate influence on research, clinical integrity, patient care, and healthcare costs. 

–Michael Potts

Reference

National Physician Payment Transparency Program: OPEN PAYMENTS. Centers for Medicare &Medicain Services Web Site.  http://www.cms.gov/Regulations-and-Guidance/Legislation/National-Physician-Payment-Transparency-Program/index.html.  Published April 12, 2013.  Accessed April 22, 2013.