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POD Primer: Some Physician-Owned Device Distributors Can Pass Muster

The best physician-owned distributors “do not bill Medicare at all,” POD-supporter Truhe said at a May 21 meeting. Instead, the distributors can sell a variety of implantable devices to hospitals, without steering the hospital to buy just one manufacturer’s wares.

Physician-owned device distributors are an unpopular bunch in many corners of the device industry and under substantial scrutiny by policymakers, but so-called PODs can be designed in an appropriate manner that does not raise fraud and abuse issues, proponents of the model argue.

“Properly operated PODs should not violate the anti-kickback statute,” said Maria Currier, a partner with Holland & Knight, said May...

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