PDP Responds to OIG Special Fraud Alert on Physician-Owned Distributorships

Spinal Tech

PDP Holdings recently released a statement in strong support for the Health and Human Services Office of Inspector General Special Fraud Report of March 26, 2013, on physician-owned distributorships. "Now that the Special Fraud Alert has been issued, we believe the OIG has reinforced that its traditional concerns with problematic joint ventures and other arrangements with physicians can apply with respect to PODs, and through its delineation of specific suspect practices, the OIG has provided a point of comparison between those types of PODs that engage in questionable conduct and those businesses that do not," said PDP President and CEO Tom Gallagher in the statement.

In 2011, PDP leaders met with OIG officials to discuss concerns with poorly constructed PODs as well as details of the company's business model.

"PDP is pleased to see all of the key points we raised with the OIG included in the Special Fraud Alert," said Mr. Gallagher. "We welcome the OIG's Special Fraud Alert because it provides more clarity in the marketplace. The features of 'suspect' PODs listed by the OIG are elements we suggested as being inconsistent with the fraud and abuse laws. The PDP model, in contrast, focuses on increased competition, lowered costs, improved outcomes and physician-driven case management that improves safety and efficiency."

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