‘Sunshine’ set to cost teaching hospitals $650 apiece
Physicians, hospitals will share in price of Sunshine Act
Physicians, teaching hospitals, group purchasing organizations and drug and device companies will bear some financial burden when the CMS begins to ask for information about their financial relationships.
The 121-page proposed guidance issued last week estimates those costs and provides clarification about how the CMS expects drug, device, biologic and medical supply manufacturers and GPOS to collect and report data about payments and “transfers of value” made to physicians and teaching hospitals, as well as manufacturers’ and GPOS’ investment interests and physician ownership.
Under the Physician Payments Sunshine Act provisions in the Patient Protection and Affordable Care Act, the CMS will annually publish the data online. A list of covered teach- ing hospitals, which are defined in the proposed rule as facilities that receive Medicare graduate medical education payments, will also be published online by the CMS each year.
“While some collaboration is beneficial to the continued innovation and improvement of our healthcare system, payments from manufacturers to physicians and teaching hospitals can also introduce conflicts of interests that may influence research, education and clinical decisionmaking in ways that compromise clinical integrity and patient care, and may lead to increased healthcare costs,” the CMS said in the proposed rule.
The CMS estimates that about 334,500 physicians will have a financial burden of $24.3 million and 1,100 teaching hospitals of $715,000 during the first year of compliance with the law. The agency based the estimates on labor costs for physicians’ offices and teaching hospitals. Physicians who receive payments and transfers of value from drug and device manufacturers will each pay an estimated $75 to review the information submitted by GPOS and manufacturers, while the estimated average total cost for each teaching hospital is $650.
The CMS said in the proposed rule that “teaching hospitals would have to review more payments or other transfers of value and have more complex relationships,” noting that it would take a representative at a teaching hospital an estimated 10 hours on average to review submitted data and up to 60 hours
The new rules require devicemakers to disclose payments to doctors.