What is the Sunshine Act?

Enacted as part of the Patient Protection and Affordable Care Act (PPACA), the Sunshine Act is an attempt to increase transparency regarding relationships between physicians, teaching hospitals, manufacturers and the pharmaceutical industry.

Manufacturers of devices, drugs and biologicals participating in U.S. federal healthcare programs (Medicare, Medicaid and/or the Children’s Health Insurance Program) are required to track and report to the Centers for Medicare and Medicaid Services (CMS) certain payments or items of value paid or given to physicians and teaching hospitals.

Additionally, manufacturers and group purchasing orders (GPOs) participating in U.S. federal healthcare programs must report certain ownership interests held by physicians and their family members to CMS.