Aggregate spend reporting requirements, initiated by the Physician Payments Sunshine Act of 2009 at the federal level and in six US states, will become mandatory for all 50 states in 2012. New legislation introduced by the Patient Protection and Affordable Care Act (PPACA) of 2010 requires the disclosure of honoraria and other monetary transactions, as well as gifts to physicians and other healthcare professionals by life science companies.
Such disclosure obligations are likely to challenge the ability of all pharmaceutical, medical device and biotechnology companies to simply track accurately such payments and gifts, commonly accepted as necessary marketing expenses. The bigger the company, the more challenging tracking and reporting will become, especially because state and federal regulatory agencies' reporting requirements vary, sometimes greatly. Spend instances will have to be reported using different code names and/or IDs, the reports formats will also differ from state to state and so will threshold amounts, just to name a few variations.
As of today, Minnesota, Maine, West Virginia, Vermont, California, Nevada, and Washington D.C. have passed disclosure laws including gift-giving limits. Starting July 2009, Massachusetts and Vermont gift ban law will punish each violation with a fine of $5,000 and $10,000 respectively, and more states are already considering similar laws.
Even the more elaborate spreadsheets will be rendered obsolete. It is not uncommon for pharmaceutical companies to spend millions of dollars a year through hundreds of thousands of spend instances, all of which will have to be tracked accurately, registered and reported to various entities using different standards. Inevitably, life science companies will have to find better ways to track and report physicians payments and aggregate spend. Most are already implementing new processes and technologies allowing them to comply.
The need for software solutions allowing life science companies to adapt to new regulations is real. MediSpend®, a web-based solution developed by MMIS, allows to not only track all spend instances, but also makes reporting tasks an effortless process (actually, one click). It was built to comply with all state and federal laws and to be updated as they evolve. Its user-friendly and web-based interface can be accessed by different users independently of their location, as well as by third-party vendors. Nonetheless, MediSpend® is extremely secure and protected. The entry of spend instances and other data follows intuitive processes, so that all users, compliance experts and novices alike can enter accurate data, quickly and without errors, and can output compliant reports in minutes. We believe that MediSpend® is the best aggregate spend reporting solution for all companies, big or small. Learn more about MediSpend® or request a free demo today.