Physician-Owned Entities Still Under Federal Microscope

Law360, New York (December 19, 2013, 6:36 PM EST) -- Physician-owned distributorships ("PODs") and other physician-owned entities ("POEs") have emerged as a favored vehicle to reduce health care costs, but the popularity of PODs and POEs has led to increased scrutiny by federal regulators.

In June 2011, the United States Senate called on the Office of Inspector General for the U.S. Department of Health and Human Services ("OIG") and Centers for Medicare & Medicaid Services to investigate the proliferation of PODs and corresponding utilization practices. The Senate report[1] cited the lack of regulatory guidance, and asked for specific guidance on the legality of PODs under the Federal Anti-Kickback Statute and Physician...

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