Watch out for implant-pushing PODs

by: Julia Kyles Mar 26, 2013

No, we’re not reviewing a movie about alien invaders. That’s the message from the HHS Office of Inspector General. In its first new Special Fraud Alert in 10 years, the agency gives guidance on physician-owned distributorships (PODs) that sell implantable medical devices.

The OIG doesn’t mind legitimate business arrangements. But it won’t tolerate arrangements that exist solely or primarily to funnel Medicare dollars into the participant’s pockets.

A number of warning signs show that a POD could be evil, our favorite being this one: “Physician-owners condition their referrals to hospitals or ASCs [ambulatory surgical centers] on their purchase of the POD’s devices through coercion or promises, for example, by stating or implying they will perform surgeries or refer patients elsewhere if a hospital or an ASC does not purchase devices from the POD; by promising or implying they will move surgeries to the hospital or ASC if it purchases devices from the POD; or by requiring a hospital or an ASC to enter into an exclusive purchase arrangement with the POD.”

In other words, play our way or we’ll take our ball and go home. We agree, adults acting like spoiled kids is a sign they’re up to no good.

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