Doc-Owned Device Cos. Carry Fraud Risk, Inspector Warns

Law360, New York (March 26, 2013, 9:12 PM EDT) -- The inspector general for federal health programs said Tuesday that it considers all physician-owned companies that distribute implantable medical devices to be “inherently suspect” under the anti-kickback statute, warning that high financial incentives could lead doctors to perform or recommend surgeries that are not medically necessary.

The physician-owned distributorships, or PODs, carry a high risk of fraud and abuse, according to the Department of Health and Human Services' Office of Inspector General — so much so that they automatically raise suspicions.

“OIG is concerned about the...
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