Senators call for investigation of physician-owned distributorships

July 10, 2011

Some U.S. Senators want an investigation of physician-owned distributorships (POD).

Some U.S. senators want an investigation of physician-owned distributorships (PODs).

"Some POD models...appear to have appropriate frameworks to try to ensure their activities are legally compliant, but there are far more that are operating in a manner that appears to be unethical and illegal," reads the letter from five members of the Senate Finance Committee to the inspector general for the U.S. Department of Health and Human Services.

"The very nature of PODs seem to create financial incentives for physician-investors to use those devices that give them the greatest financial return so that, in the process, patient treatment decisions may be based on personal financial gain," according the Senate Finance Committee report that spurred the request for an investigation.