Sunshine Rule Requires Physicians to Report Gifts from Drug, Medical Device Companies

The Hospitalist. 2013 May;2013(05):

May 1, 2013 | The Hospitalist

“We have tremendous discretion about how health-care dollars are spent and with that comes a fiduciary responsibility, both to the patient and to the public,” he said. “This does not seem terribly burdensome to me. If I was getting nickel and dimed for every piece of candy I took through the exhibit hall during a meeting, that would be ridiculous. I’m happy to do this in a reasoned way.”

Dr. Percelay noted that the Sunshine Rule does not prevent industry payments to physicians or groups, but simply requires the public reporting and display of the remuneration. In that vein, he likened it to ethical rules that govern those who hold elected office.

“Someone should be able to Google and see that I’ve [received] funds from market research,” he said. “It’s not much different from politicians. It’s then up to the public and the media to do their due diligence.”

Dr. Lenchus said the public database has the potential to be misinterpreted by a public unfamiliar with how health care works. In particular, patients might not be able to discern the differences between the value of lunches, the payments for being on advisory boards, and industry-funded research.

“I really fear the public will look at this website, see there is any financial inducement to any physician, and erroneously conclude that any prescription of that company’s medication means that person is getting a kickback,” he says. “And we know that’s absolutely false.”

Richard Quinn is a freelance writer in New Jersey.

Dos and Don’ts

The Physician Payment Sunshine Act defines what must be reported by pharmaceutical companies, device makers, and other manufacturers, as well as group purchasing organizations (GPOs). It also sets penalties for noncompliance. The rule’s highlights include:

Transfers of value of less than $10 do not have to be reported, unless the cumulative transfers total $100 or more in a calendar year.
Manufacturers do not have to collect data on or report on buffet meals, individual snacks, or drinks they provide to physicians at meetings where it would be difficult to determine who partook of the offering. However, meals provided for which the participants can be easily identified must be reported.
CMS will fine those who fail to submit the required information $1,000 to $10,000 for each violation. Maximum fines can total $150,000 in a calendar year.
Knowingly failing to submit required information is subject to fines of $10,000 to $100,000. Those fines are capped at an annual total of $1 million.

—Richard Quinn

Sunshine Rule Requires Physicians to Report Gifts from Drug, Medical Device Companies

Dos and Don’ts

References