The Wall Street Journal has extensively covered the case of a Portland, Ore., neurosurgeon alleged to be overperforming spine surgery. As a sidebar discussion, the WSJ has commented on the increased physician involvement in physician-owned distribution ROI device companies.
There the physician owns part of a firm which sells devices or implants to the ambulatory surgery center or hospital the physician works at. He then profits when he or the company he is a partner in sells the device or implant to the ASC or hospital.
Scott Becker, JD, CPA, of McGuireWoods, has long warned people of the risk of such relationships, i.e., even though they may fit an exception under the Stark Act, they do not meet an Antikickback Safe Harbor and he perceives significant risk in many of these structures.
According to a recent WSJ report, "The Office of Inspector General of the Department of Health and the Centers for Medicare and Medicaid Services have both warned that PODs (physician-owned distributorships) may violate federal antikickback statutes and laws governing patient referrals." ["Hospital Bars Surgeon From Operating Room," WSJ, 4/13/11]
To learn more about such issues, register for the 9th Annual Orthopedic, Spine and Pain Management-Driven ASC Conference (June 9-11; Chicago).