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ARTICLE · 24 APRIL 2013

Physicians Tripped Up By Change in Rule

The mega-rule clarified that if you receive direct or indirect "remuneration" from or on behalf of a third party – such as a pharmaceutical manufacturer, physical therapist, durable medical equipment company or health club – that encourages the use of the third party’s product or services, the covered entity first will need authorization from the patient to make the communication.

United StatesFinance and Banking

The mega-rule clarified that if you receive direct or indirect "remuneration" from or on behalf of a third party – such as a pharmaceutical manufacturer, physical therapist, durable medical equipment company or health club – that encourages the use of the third party's product or services, the covered entity first will need authorization from the patient to make the communication.   In addition, the authorization needs to alert the patient that the covered entity is receiving the payment or subsidy from a third party for the communication.

The marketing change is one of the biggest surprises in the final mega-rule. The proposed rule would have allowed treatment-related communications without needing an authorization or having to disclose the payment.

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