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The PPACA 's 'Physician Payment Sunshine Provisions'

By Kendra Perkins Norwood

The U.S. Supreme Court's recent decision in Nat'l Fed'n of Indep. Bus. v. Sebelius, 567 U.S. ____ (2012), upholding the Patient Protection and Affordable Care Act (PPACA) (42 U.S.C. ' 18001) signed into law by President Obama in 2010, will likely be one of the most controversial and talked-about legal decisions of this century. While the media attention surrounding both the legislation and the Supreme Court's decision has focused on the individual mandate ' one of the most contested provisions of the Act ' a lesser-known mandate known as the “Physician Payment Sunshine provisions” may have larger implications for pharmaceutical companies and others.

Located in ' 6002 of the PPACA and formally titled “Transparency Reports and Reporting of Physician Ownership or Investment Interests,” the Physician Payment Sunshine provisions require pharmaceutical and medical device companies to publicly disclose the payments they make to physicians. Although a small number of manufacturers already report this information publicly, there has never been a widespread federal requirement to do so until the PPACA was enacted.

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