On September 13, 2011, the Department of Health and Human Services Office of Inspector General (OIG) responded to previously presented concerns from Senators Hatch (R-Utah), Kohl (D-WI), Grassley (R-IA), Baucus (D-MT), and Corker (R-TN) regarding the proliferation of physician owned distributorships (PODs) and the lack of discrete guidance regarding their utilization. The Senators had requested specific guidance from the OIG in a letter dated June 9, 2011. In that letter, the Senators were highly critical of PODs and raised concerns that PODs were areas of significant fraud and abuse risk. In a similar letter to CMS Administrator Donald Berwick, also dated June 9, 2011, the Senators had requested specific regulatory guidance regarding PODs.
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