The Open Payments Program is part of the Affordable Care Act and makes clear certain federal requirements for companies that sell drugs or medical devices to hospitals, physicians, or other healthcare professionals. This program provides transparency about certain financial transactions between healthcare providers and medical manufacturers or distributors. If you are starting a new company that will sell medications or you are developing a medical device that you hope to sell to hospitals and doctors, you will need to keep track of any payments or other transfers of value. Here's what you need to know about the CMS Open Payments Program and how you can make sure your new company is ready to comply with all regulations and requirements.
The Open Payments Program Is Handled By CMS
The Centers for Medicare and Medicaid Services (CMS) is the name of the government entity in charge of managing the Open Payments Program under the Affordable Care Act.
The Open Payments Program Allows Covered Recipients to Dispute Data Before It Becomes Public
One of the reasons it's important to make sure your new business is balancing the books and documenting all of your financial transactions or sales accurately is that once you submit this data to the Open Payments Program, the covered recipient (meaning the hospital or healthcare professional you did business with) will be able to review the data and possibly dispute the information before it becomes public information. Many healthcare organizations are publicly traded firms that publish their financial data in full every year. No healthcare provider wants to be seen as taking advantage of the public or getting involved in any financial transaction that would put them in a poor light. This is why you can expect every covered recipient you do business with to keep a close eye on what you are telling the government about these transactions. A dispute about something you reported can create a headache that leads to additional paperwork and perhaps a full investigation that will eat up your company's time.
Hire an Expert or Use CMS Open Payments Report Software to Ensure Compliance
You likely just want to focus on manufacturing or selling your product and would prefer not to have to get bogged down into the details regarding the Open Payments Program. To that end, it's possible today to retain the help of an expert or even use specific software that is designed to help you navigate this particular situation. With access to the right expert or software program, you can ensure the data you report is accurate and avoid any unnecessary disputes or bad PR for your company.Share
12 November 2021
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