CMS Announces Sunshine Act Open Payment Registration To Begin on February 18, 2014

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On Friday, February 7, 2014, CMS announced that Open Payments registration is scheduled to begin on Tuesday, February 18, 2014 for applicable manufacturers and applicable group purchasing organizations (GPOs).  According to CMS, the Open Payments program is designed to create greater public transparency about financial transactions among doctors, teaching hospitals, drug and device manufacturers, and other healthcare businesses.  The agency provided new details about its plans for a two-phased approach to the registration and data submission processes for the first reporting period. Here are the highlights:

  • Phase 1 will take place February 18 through March 31, 2014:  Requires (1) registration within the CMS Enterprise Portal by applicable manufacturers and applicable GPOs that will have data to report; (2) submission of corporate profile information for such applicable manufacturers and applicable GPOs; and (3) submission of certain “aggregate” information regarding reportable data for the first reporting period (Aug. 1 – Dec. 31, 2013).
  • Phase 2 will begin in May 2014 and extend for at least 30 days (but no later than August 1): Requires (1) registration in the Open Payments system (a system separate and distinct from the CMS Enterprise Portal); (2) submission of detailed data covering the first reporting period, i.e., the applicable manufacturer’s or applicable GPO’s complete spend/ownership report covering the first reporting period (using the instructions now available on the Open Payments website); and (3) completion of an attestation regarding the accuracy of data submitted.
  • For the 2013 program year, CMS will not enforce penalties until after the close of Phase 2.
  • The 45-day covered recipient review period and subsequent 15-day correction period will begin by August 1, 2014.
  • No action is required from covered recipients (affected physicians; teaching hospitals) at this time.  The announcement did not provide information regarding the agency’s timeline for the covered recipient (affected physicians; teaching hospitals) registration period; however, covered recipient registration will presumably need to occur before the 45-day review period begins, which is expected to begin by August 1, 2014.

CMS released the announcement via email to the Open Payments email distribution list.  CMS is soon expected to announce the date and registration information for an industry-focused webinar on the phased approach to Open Payments registration and data submission.

Reporter, Brian Bohnenkamp, Washington, D.C., +1 202 626 5413, bbohnenkamp@kslaw.com.