Physician and Teaching Hospital Sunshine Act Registration to Begin June 1

12 May 2014 Health Care Law Today Blog

Under the Physician Payments Sunshine Act, pharmaceutical and medical device manufacturers and group purchasing organizations (GPOs) are required to annually report payments or other transfers of value made to physicians and teaching hospitals. The resulting data will be available on a public, searchable website entitled Open Payments.

While the data collecting phases have been underway since mid-February, June 1 will mark the first time that physicians and teaching hospitals will begin the registration process to review the information submitted by manufacturers and GPOs before it is posted on Open Payments. Registration is not required by all physicians or teaching hospitals that receive payments or transfers of value reported by manufacturers and GPOs; however, if a hospital or physician would like to view or contest information reported prior to its publication, it must first register with CMS. 

The review process will begin in July. Physicians and teaching hospitals will be allowed to dispute and try to resolve any discrepancies in the information reported by GPOs or manufacturers for 45 days. If during those 45 days the dispute is resolved, and the manufacturer or GPO attests to the revised data, the corrected information will be published on Open Payments. If the dispute is not resolved, the original information submitted by the manufacturer or GPO will be published with a demarcation that the information shown is under dispute. Any corrections from disputes initiated after the 45-day period may not be reflected in the public data.

Given the timeline and the inability for a physician or hospital to compel a manufacturer or GPO to revise information submitted prior to its publication, the rollout in the upcoming months could create new tensions in previously collegial collaborations, which may affect how such arrangements are structured in the future. Teaching hospitals and physicians should be prepared to implement a process to review data submitted by manufacturers and GPOs and should begin to consider how to revise existing arrangements and draft new agreements to protect their interest in ensuring the accuracy of information posted on Open Payments.

This blog is made available by Foley & Lardner LLP (“Foley” or “the Firm”) for informational purposes only. It is not meant to convey the Firm’s legal position on behalf of any client, nor is it intended to convey specific legal advice. Any opinions expressed in this article do not necessarily reflect the views of Foley & Lardner LLP, its partners, or its clients. Accordingly, do not act upon this information without seeking counsel from a licensed attorney. This blog is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Communicating with Foley through this website by email, blog post, or otherwise, does not create an attorney-client relationship for any legal matter. Therefore, any communication or material you transmit to Foley through this blog, whether by email, blog post or any other manner, will not be treated as confidential or proprietary. The information on this blog is published “AS IS” and is not guaranteed to be complete, accurate, and or up-to-date. Foley makes no representations or warranties of any kind, express or implied, as to the operation or content of the site. Foley expressly disclaims all other guarantees, warranties, conditions and representations of any kind, either express or implied, whether arising under any statute, law, commercial use or otherwise, including implied warranties of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Foley or any of its partners, officers, employees, agents or affiliates be liable, directly or indirectly, under any theory of law (contract, tort, negligence or otherwise), to you or anyone else, for any claims, losses or damages, direct, indirect special, incidental, punitive or consequential, resulting from or occasioned by the creation, use of or reliance on this site (including information and other content) or any third party websites or the information, resources or material accessed through any such websites. In some jurisdictions, the contents of this blog may be considered Attorney Advertising. If applicable, please note that prior results do not guarantee a similar outcome. Photographs are for dramatization purposes only and may include models. Likenesses do not necessarily imply current client, partnership or employee status.

Related Services