HHS fraud alert targets physician-owned distributorships

Physician-owned distributorships are the target of a new special fraud alert issued by the Office of Inspector General.Citing the “strong potential for improper inducements between and among the physician investors, the entities, device vendors and device purchasers,” the alert, dated March 26, sounded a clear warning about how the office views physician-owned distributorships (PODs).“We believe that PODs are inherently suspect under the anti-kickback statute,” the alert said, adding that the office is concerned about the “proliferation” of PODs.

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