Fraud and Abuse Considerations for Physician Owned Distributorships

• April 25, 2023

• Jeremy L. Belanger , Studebaker Nault PLLC

“Physician owned distributorships” or “PODs” can be broadly defined as wholly or partially, directly or indirectly, physician-owned manufacturers, distributors, or vendors of medical products, equipment, or supplies. PODs often distribute or produce implantable surgical devices.

PODs can have various types of ownership arrangements. A physician may have ownership directly in the POD’s stock or membership interest, or they may be owned by investment entities, which may allow physicians to own a stake in multiple entities. Under the fraud and abuse laws, ownership in an entity is not limited to only ownership of the particular ownership interest of the entity, but can also include certain types of loans, bonds, or other debt instruments.

ARTICLE TAGS

• Fraud & Abuse Practice Group
• Fraud and Compliance