The Centers for Medicare and Medicaid Services (CMS) recently released the latest data on certain payments made to physicians and teaching hospitals by healthcare drug and device manufacturers and Group Purchasing Organizations (GPOs).
Formally dubbed the CMS Open Payments Program and often referred to as the Sunshine Act, the program seeks to shed light on the financial ties between manufacturers and their provider-side payment recipients in an effort “to prevent inappropriate influence on research, education and clinical decision making.” Launched as a provision under the Affordable Care Act in 2010 and now in its third year of published data, Open Payments reporting is required for “applicable” manufacturers and can include financial payments for research activities, gifts, speaking fees, meals, or travel. (CMS provides a “Natures of Payment” table with additional detail on the types of financial transactions applicable to Open Payments Program reporting.)
According to the recently issued 2015 Open Payments data, nearly 620,000 physicians and 1,100 teaching hospitals received just over $7.5 billion in total payments stemming from 11 million published payment records over the course of that calendar year. Roughly half of all 2015 payments went to research, $2.6 billion went to non-research related payments, and just over $1 billion of total payments were related to ownership or investment interests. Swiss drug manufacturer Novartis was identified as the biggest spender, paying nearly $540 million to physicians and teaching hospitals in 2015.
Definitive Healthcare researchers recently drilled down into the teaching hospital subset of the 2015 Open Payments data to examine payment trends among hospital entities.
Source: Definitive Healthcare
The average payment made by a manufacturer or GPO to teaching hospitals in 2015 was $125,982. Among the top 10, the average was approximately $2.5 million. Celgene Corporation (Summit, NJ) was by far and away the biggest spender, paying almost twice that of second biggest spender Gilead Sciences Inc (Foster City, CA).
|Brigham and Womens Hospital||Boston, MA||$37,615,459|
|Dana - Farber Cancer Institute||Boston, MA||$34,818,378|
|Massachusetts General Hospital||Boston, MA||$25,251,904|
|University Hospital||Salt Lake City, UT||$14,932,371|
|UAMS Medical Center||Little Rock, AR||$12,568,663|
|Henry Ford Hospital||Detroit, MI||$11,847,201|
|Beth Israel Deaconess Medical Center||Boston, MA||$11,290,374|
|Langley Porter Psychiatric Hospital||San Francisco, CA||$7,948,734|
|Boston Childrens Hospital||Boston, MA||$7,174,665|
|OHSU Hospital And Clinics||Portland, MA||$5,253,136|
Source: Definitive Healthcare
The 791 teaching hospitals reporting Open Payments data in 2015 received an average of $362,275. Among the top 10, the average was approximately $16.8 million. Short term acute care hospitals – particularly those in the Boston area - dominated the list. Brigham and Womens Hospital (Boston, MA) topped the list, netting roughly $37.6 million in 2015 Open Payments.
Definitive Healthcare has the most up-to-date, comprehensive and integrated data on over 7,700 hospitals, 1.4 million physicians, and numerous other healthcare providers. Our database allows users to analyze open payments data by hospital or physician, and well as search based on these criteria or by financials, quality metrics, drugs prescribed, technology use and many other metrics.
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