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Audits and Penalties


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Audits and Penalties

Applicable manufacturers and applicable GPOs may be audited at any time for compliance to ensure the submission of timely, accurate, and complete reports of payments or other transfers of values made to physicians and teaching hospitals and physician ownership or investment interests.  Applicable GPOs may be audited to ensure the submission of timely, accurate, and complete reports on ownership or investment interests held by physicians and their immediate family members at any time.

CMS requires that your organization keep all records related to payments or other transfers of value for at least five years from the date that the payment or other transfers of value are posted.

Civil monetary penalties (CMPs) of up to $1,000,000 may be imposed on your organization if it fails to report information in a timely, accurate, or complete manner.  Any CMPs collected will be used to implement Open Payments.

It should also be noted that physician-owned distributors are considered applicable GPOs and are not exempt from reporting.