Establishing fair market value (FMV) for interactions between your company and physicians is of the utmost importance. FMV refers to the rate or range of rates you pay to a physician for providing a service to your company. You establish FMV based on criteria such as education, experience, and expertise. Companies set off red flags with the authorities if they are inconsistent in payments to a doctor. For example, your company may be paying two doctors with similar experience two different rates. This could be problematic. These rates help keep companies competitive, law abiding, and honest.
Easy-to-use SaaS compliance software can help life sciences track FMV rates, which can be shared across departments. This ensures that payments remain consistent. The technology keeps tabs on all the interactions employees are having with physicians and teaching hospitals and then it saves the numbers in a searchable, accessible database.
Still not convinced? Check out these 3 business benefits to FMV:FMV Rates Help Minimize Risks of Violation
Even if you know little about the law, you are aware of the Anti-Kickback Statute (AKS) in the United States and other anti-bribary laws abroad. FMV rates set a standard for how much you should pay each doctor with whom you interact. All the parties are then aware of that number and may accept it or not. Setting an FMV rate and then consistently paying the same rate to a doctor is a way to avoid violations. Complaince software that helps to manage FMV data can also help your company document exceptions to set rates and justification for deviations when they come along.A More Efficient and Well-Guided Team
When compliance software creates a repository of FMV rates for your company, your employees can access it. As a result, they will know what they can offer for each interaction. There won't be doubts, questions, or confusion. Having standard rates helps build a roadmap for employees, so they know just how much to pay each doctor. What’s great about having FMV rates at your fingertips is that your risk of violations is significantly reduced.Makes Your Life Easier
Having compliance software that maintains a running list of FMV rates for the doctors with whom you work is a lifesaver. This provides readily available FMV rates that help prevent mistakes in payments. Most importantly, having a methodology to create FMV rates for each doctor helps employees act with certainty. There's no question about what they should be paying out on the company's behalf. All these benefits amount to peace of mind for you.