SHARE

November 16, 2022

New California Law Requires Open Payments Notice to Patients

You've Reached Your
Free Article Limit This Month
Register for free to get unlimited access to all Law.com OnPractice content.
Register Now

On September 29, 2022, California Governor Gavin Newsom signed Assembly Bill 1278, which requires physicians and their employers to provide patients with notices about the Open Payments database starting January 1, 2023.

The federal Open Payments program is designed to promote transparency by requiring applicable manufacturers of drugs, devices, and biological or medical supplies to annually report to the Centers for Medicare & Medicaid Services certain payments and other transfers of value made to physicians, certain advanced practice providers (e.g., nurse practitioners) and teaching hospitals. Currently, pharmaceutical companies in California must disclose their compliance program, including information related to the annual dollar limits on gifts, promotional materials or incentives provided to medical or health professionals (California Health & Safety Code § 119402). The enactment of this new legislation will impose new disclosure requirements specifically onto physicians and their employers regarding physicians' financial relationships with pharmaceutical and medical device manufacturers.

Effective January 1, 2023, physicians and surgeons who are licensed pursuant to the California Medical Practice Act or the California Osteopathic Act, or their employers, must provide patients with a written or electronic notice of the Open Payments database at the initial office visit. The new notice requirement will apply to California-licensed physicians who are located outside of California but provide telehealth services to patients in California. The new law does not apply to physicians and surgeons working in a hospital emergency room.

The written or electronic notice must include a signature from the patient or the patient's representative, the date of signature and the following text:

  • The Open Payments database is a federal tool used to search payments made by drug and device companies to physicians and teaching hospitals. It can be found at https://openpaymentsdata.cms.gov. For informational purposes only, a link to the federal Centers for Medicare and Medicaid Services (CMS) Open Payments web page is provided here. The federal Physician Payments Sunshine Act requires that detailed information about payment and other payments of value worth over ten dollars ($10) from manufacturers of drugs, medical devices, and biologics to physicians and teaching hospitals be made available to the public.

Physicians and surgeons must retain the notice in the patient's medical record.

Physicians and surgeons also are required to post an Open Payments database notice in each location where they practice, in an area where the notice is likely to be seen by all persons who enter the office. Effective January 1, 2024, physicians and surgeons also must conspicuously post the same Open Payments database notice on their practice's website if any.

Violation of this law will constitute unprofessional conduct, which may subject violators to disciplinary actions by their respective licensing boards.

ALM expressly disclaims any express or implied warranty regarding the OnPractice Content, including any implied warranty that the OnPractice Content is accurate, has been corrected or is otherwise free from errors.

More From McDermott Will & Emery

Merck Fosters Healthcare Of The Future

By McDermott Will & Emery attorneys McDermott Will & Emery December 02 , 2022

Artificial intelligence and machine learning have led a digital transformation in healthcare, expanding providers’ resources and improving the lives of people around the world.

A Tsunami of Lawsuits Is Expected to Slam Institutions in the Wake of New York Adult Survivors Act

By Greer Griffith McDermott Will & Emery December 01 , 2022

A new revival window opened on Thanksgiving Day for filing sexual assault and abuse lawsuits that would otherwise be time-barred by the New York statute of limitations.

Tax Court Holds That Deficiency Petition 90-Day Time Limit Is Jurisdictional

By Andrew R. Roberson McDermott Will & Emery December 01 , 2022

Last summer, the Supreme Court of the United States held that the 30-day time limit to file a Collection Due Process (CDP) petition is a non-jurisdictional deadline subject to equitable tolling (Boechler, P.C. v. Commissioner).

More From Health Care

Merck Fosters Healthcare Of The Future

By McDermott Will & Emery attorneys McDermott Will & Emery December 02 , 2022

Artificial intelligence and machine learning have led a digital transformation in healthcare, expanding providers’ resources and improving the lives of people around the world.

Spoliation Series: Discovery Abuses Can Lead to Case-Ending Sanctions

By Kathryn C. Cole Greenberg Traurig December 01 , 2022

In Abbott Laboratories, et al., v Adelphia Supply USA (EDNY May 2, 2019), Plaintiffs filed a motion for case-ending sanctions against defendants H&H Wholesale Services, Inc., Howard Goldman, and Lori Goldman (for purposes of this blog, “Defendants”).

A Tsunami of Lawsuits Is Expected to Slam Institutions in the Wake of New York Adult Survivors Act

By Greer Griffith McDermott Will & Emery December 01 , 2022

A new revival window opened on Thanksgiving Day for filing sexual assault and abuse lawsuits that would otherwise be time-barred by the New York statute of limitations.

Featured Stories
Closeclose
Search
Menu

Working...