CHA News Article

OIG Posts Special Fraud Alert About Physician Owned Distributorships
Hospitals need to stay current with all OIG guidance

The Office of Inspector General posted the attached special fraud alert today highlighting the risk of violating the anti-kickback statute when entering into arrangements with physician owned distributorships (PODs). The anti-kickback statute imposes criminal liability on both sides of an arrangement. Therefore, it is critically important that hospitals remain current with all OIG guidance when entering into arrangements with physicians, including PODs. Today’s special fraud alert reiterates the OIG’s “longstanding position that the opportunity for a referring physician to earn a profit, including through an investment in an entity for which he or she generates business, could constitute illegal remuneration under the anti-kickback statute.” PODs are recognized by the OIG as “inherently suspect under the anti-kickback statute.” The special fraud alert, additional guidance and more information are available at