Home > Fraud and Abuse, Healthcare Business, Physician Practices > Justice Department Hits Physician Owned Distributorships (PODS)

Justice Department Hits Physician Owned Distributorships (PODS)

Florida Healthcare Law Firm Blog

money doctor For the first time, the Department of Justice (DOJ) has fired a shot at a physician owned distributorship (POD).  In the case, the DOJ suit claims that the ownership interest of a neurosurgeon in a spinal surgery device distributorship has caused him to perform unnecessary surgeries.

PODs have been the source of considerable controversy for years.  A couple years ago, they caught the attention of Congress.  The Office of Inspector General of the Department of Health and Human Services (“OIG”) has even issued a Fraud Alert making clear their dislike of PODs and sending a clear shot across the bow of those who are in that industry.  In 2006, the Office of the Inspector General of HHS and CMS expressed major concerns about PODs, and cited concerns about “improper inducements.”  At that time, the OIG stopped short of prohibiting them, but called for heightened scrutiny.  CMS itself has stated…

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  1. March 13, 2014 at 1:14 pm

    Thanks for republishing!

  2. March 31, 2014 at 8:13 am

    Thanks for republishing nad great post..

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