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  • Introduced by: Vemuri S. Murthy, MD, Delegate, for Chicago Medical Society

    Subject: Accuracy and Accountability of Physician Compensation Reporting by Drug and Device Companies

    Referred to: Reference Committee B

    Whereas, U.S. federal law requires drug and device companies to report compensation to physicians as part of the Physician Payments Sunshine Act; and

    Whereas, these compensations are listed on a public website named OpenPaymentsData.CMS.gov and can be searched by an individual physician’s name; and

    Whereas, companies that report physician compensation do not have to provide proof of delivery and receipt of reportable compensation; and

    Whereas, companies’ representatives may leave food, beverages, or other gifts at a physician’s office (or at the door of the office) without physician consent and report this “gift” under the Sunshine Act; and

    Whereas, disputing a payment that has been inaccurately reported by a company is cumbersome and requires the reporting company to submit paperwork redacting the payment; and

    Whereas, payment posted in error may imply a conflict of interest or relationship between the company to the public, including the physician’s patients; and

    Whereas, on February 27, 2018, the Chicago Medical Society approved a resolution directing the Illinois State Medical Society and the American Medical Association to seek changes to the Physician Payments Sunshine Act so that any reportable compensation must include proof of delivery and receipt; therefore, be it

    RESOLVED, that the Illinois State Medical Society (ISMS) introduce a resolution to the American Medical Association (AMA) stating that any compensation reported as part of the Physician Payments Sunshine Act should be accompanied by a verifiable receipt signed by the physician acknowledging receipt of said compensation; and be it further 

    RESOLVED, that the ISMS resolution to the AMA stipulate that contested reported compensation should be removed immediately from the OpenPaymentsData.CMS.gov website until the reporting company validates the compensation with a signed receipt; and be it further 

    RESOLVED, that the ISMS resolution stipulate that companies reporting physician payments as part of the Physician Payments Sunshine Act without proper documentation shall be fined $1,000 per occurrence. 

    Existing ISMS policy related to this issue:

    House of Delegates adopted Res. 26 (A-99) which directed the ISMS delegation to the AMA to introduce a resolution calling on the AMA to review the sudden and significant rate increases in the generic drug industry with the American Pharmacy Association, the appropriate trade associations representing generic drug manufacturers and other appropriate entities and bring any inappropriate marketing, dispensing or incentive practices to the attention of appropriate regulatory agencies. (HOD 1999)

    NOTE: In 2014 and 2015, ISMS joined with other state and national medical societies to urge support of federal legislation that would clarify reporting exemptions under the Physician Payments Sunshine Act. The exemptions in the bill include certain payments and other transfers of value used to support medical educational programs and materials.


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