Healthcare Business News

CMS delays data collection for Sunshine Act to 2013

By Jaimy Lee
Posted: May 4, 2012 - 12:30 pm ET

The CMS has again extended the implementation of the Physician Payments Sunshine Act and will not require drug and device manufacturers to begin collecting data on payments to providers until 2013.

The Physicians Payments Sunshine Act is a provision in the Patient Protection and Affordable Care Act that is intended to increase public accountability and transparency.

The CMS said in a May 3 blog post that it plans to issue a final rule this year and that it will not require data collection before 2013. The final rule had been expected to be released in June.

"In order to provide time for organizations to prepare for data submission and to sufficiently address the important input we received during the rulemaking process, CMS will not require data collection by applicable manufacturers and applicable group purchasing organizations before Jan. 1, 2013," the CMS said.

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After missing an Oct. 1, 2011 deadline to establish procedures for reporting data on payments to providers, the CMS later issued a proposed rule in December, just weeks before organizations were expected to begin collecting data. At that time, the agency had recommended delaying data collection.

The agency said it received more than 300 comments during the 60-day comment period.

In an April 4 letter to CMS acting Administrator Marilyn Tavenner, Sens. Chuck Grassley (R-Iowa) and Herb Kohl (D-Wis.) urged implementation of the provision.

"Our goal is to promote the implementation of the law as expeditiously as possible," Grassley and Kohl wrote. "We are disappointed that regulations implementing the Sunshine Act were not complete by the statutory deadline of Oct. 1, 2011."

The provision will require drug and device companies to report payments or gifts to physicians and teaching hospitals. It also requires manufactures and GPOs to report physician ownership and investment interests.

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