Sunlight as Disinfectant — New Rules on Disclosure of Industry Payments to Physicians

Will new rules requiring drug and device companies to disclose payments to physicians and teaching hospitals have the intended effects? Disclosure's benefits are unlikely to be realized without the activation of “learned intermediaries,” such as health insurers. After extensive public comment, the Centers for Medicare and Medicaid Services (CMS) issued final regulations in February implementing the Physician Payments Sunshine Act, enacted as part of the Affordable Care Act. 1 The 287-page document details requirements for producers of drugs, biologics, devices, and medical supplies to disclose virtually all transfers of value to physicians and teaching hospitals. The provisions were intended to help patients make more informed decisions and to deter financial relationships that might inflate health care costs. 1 The rules go well beyond preexisting law but stop short of directly regulating financial relationships. Given that CMS projects compliance costs . . .