OIG Responds to Senators’ Request for Guidance on Physician Owned Distributorships

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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