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4 Points About Payments Between Physicians and Medical Vendors

     The Sunshine Act was passed to make the dealings between physicians and medical vendors public and transparent. As this act was passed not so long ago, many medical practitioners are not aware of what it entails exactly. Therefore, it is essential for them to attend the Sunshine Act training. This training was made available so that all healthcare employees could fully understand the guidelines this act lays down.

The Sunshine Act is legally known as the Physician Payment Sunshine Act. It was passed in 2010 under the Patient Protection Affordable Care Act. This act states that when medical manufacturers or vendors' buys, sell, or negotiate for a medical product, device, drug, or other medical equipments, they have to disclose all the information about any gifts or payments made to the medical practitioners.

When disclosing information about the transactions between the two parties, there are a few rules that they have to follow. Here are four important points that the Sunshine Act says about physicians and medical vendors.

All the payments must be reported to the State Department once every year. This report has to include all the related details like amount, mode of patient, form of payment (cash, check, gift, etc.), vendor ID, physician name and address, and so on. Every year the report must also include information and details about payments and gifts from previous years.

In addition, any gift or payment made to the physician in relation to covered drugs, biological products, and medical devices newly launched in the healthcare industry must also be reported.

The reports must only include payments and gifts that exceed $10. Anything below this amount need not be reported. Also, if all the payments in a year are below $100, then there is no need for an annual report to be sent.

The penalties for not complying with these rules can be severe. If the company fails to disclose any information that they are supposed to, intentionally or unintentionally, they will have to shell out huge fines. The fines range from $10,000 to $100,000. The amount depends on the type of information not left undisclosed and the value of payment in that particular dealing.

The Sunshine Act training will enable healthcare employees to understand all these rules well. As important it is for all healthcare employees to attend the training, it is even more important for medical practitioners and medical manufacturers and vendors to attend it, as they are the ones who are directly involved. The guidelines may differ in different states of the U.S and you must know what your state guidelines are.

The Sunshine Act has affected the healthcare system to a large extent, especially with regard to the relationship between medical practitioners and vendors. It has made their relationship public. This means that the frauds they have committed in the past are impossible now as all their information is now public.

For more information, please visit our Texas HB300 website

For more information, please visit our Texas HB300 website.

For more information, please visit our Texas HB300 website

Article Source:

For more information, please visit our Texas HB300 website.

Posted on 2013-01-26, By: *

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Note: The content of this article solely conveys the opinion of its author.

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