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Meaningful Health Care Informatics Blog

Feb 4 2013   10:29PM GMT

CMS to require full disclosure of physician and vendor financial dealings



Posted by: RedaChouffani
ACA, cmp, CMS, sunshine rule

A new CMS update will force some vendors and physicians to reveal their financial relationship with full disclosure, beginning Aug. 13, 2013.

The ruling is part of the Affordable Care Act “Sunshine” rule that will increase transparency, enabling both the public and patients to see more payment details between care providers and medicine and medical device manufacturers/suppliers.

Under the new legislation, any transfer of value or payments must be reported to CMS, who will then post the information on its website.  The data collection will begin Aug. 1, and applicable group purchasing organizations (GPOs) and manufacturers will have until March 31, 2014 to report the 2013 data. Finally, CMS will re-release the data to the public by September, 2014.

The data must be downloadable, easily searchable and aggregated.  It must also supply a National Provider Identifier.

As outlined in the ruling, the following are the final penalties set forth:

The applicable manufacturer or applicable GPO will be subject to a Civil Money Penalty (CMP) of at least $1,000, but no more than $10,000, for each payment or other transfer of value, or ownership or investment interest not reported as required. The maximum total CMP with respect to each annual submission for failure to report is $150,000. For knowing failure to submit required information in a timely manner, an applicable manufacturer or applicable GPO will be subject to a CMP of at least $10,000, but no more than $100,000, for each payment or other transfer of value, or ownership or investment interest not reported as required. The maximum total CMP with respect to each annual submission for a knowing failure to report is $1,000,000.

These regulations will require manufacture representatives who are visiting physicians around tracking trip or visit details to assign a financial value to their transactions. In some cases it may even reduce the number of visits made to physicians, as it may inevitably reveal that they are accepting gifts, which patients may deem  inappropriate.

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