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Contact:
Jon Dobson
202-434-7272
jdobson@advamed.org
May 10, 2016

AdvaMed Applauds Senate Finance Committee Report On Physician-Owned Distributors

WASHINGTON, D.C. – Matthew E. Wetzel, vice president and assistant general counsel of the Advanced Medical Technology Association (AdvaMed), today issued the following statement after release by the Senate Finance Committee of a report on important concerns raised by physician-owned distributors (PODs):                     

“The committee’s report reaffirms previous findings by the Department of Health and Human Services’ Office of Inspector General (OIG) that PODs raise serious conflicts-of-interest issues, produce substantial fraud and abuse risk, and pose dangers to patient safety.

“Importantly, the Senate Finance Committee’s report recognizes the important distinction between PODs and medical technology innovators and manufacturers that may have some element of physician ownership.

“AdvaMed is encouraged that the new report includes specific recommendations with respect to health care compliance programs. We continue to engage with key stakeholders to educate and raise awareness about the issue of PODs, including the critical distinction that the Senate Finance Committee makes between PODs and medical technology innovators and manufacturers that may have some element of physician ownership.

“AdvaMed commends Committee Chairman Orrin Hatch (R-Utah) and his staff for their diligent effort in developing this report. We also appreciate the continued interest and leadership of the entire Finance Committee in combatting inappropriate POD arrangements, and welcome further guidance from the OIG, the Centers for Medicare and Medicaid Services, and other agencies on this critical topic of ethics and integrity.

“AdvaMed has long raised concerns regarding PODs and has advocated for transparent, ethical business arrangements and ownership models for medical technology manufacturers and distributors under federal laws, consistent with the association’s Code of Ethics. We are committed to working with our members to continue to raise awareness and develop proactive advocacy solutions to address PODs-related concerns.”

For additional background information, recent developments and key resources regarding PODs, and related AdvaMed advocacy, please see our background document here.

   

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