As Physician Payment Sunshine Act became a law under President Obama’s Patient Protection Affordable Care Act, any Purchasing Organization that purchases, arranges for, or negotiates the purchase of a covered drug, device, biological, or medical supply or Manufacturer of a covered drug, device, biological, or medical supply operating in the United States, or in a territory, possession, or commonwealth of the United States is required to publicly disclose gifts and payments made to physicians. Additionally, a referring physician is required to inform the individual in writing at the time of the referral that the individual may obtain the services for which the individual is being referred. Payments under a product development agreement must also be reported as well for services furnished in connection with the development of a new drug, device, biological, or medical supply. Annual report is to be submitted to Congress and State.
Excluded from reporting is a transfer of anything the value of which is less than $10, unless the aggregate amount transferred to, requested by, or designated on behalf of the covered recipient by the applicable manufacturer during the calendar year exceeds $100.
Penalty for each payment not reported can be up to $10,000. Penalty for knowingly failing to submit payment information can be up to $100,000, for each payment.