Exempted Payments/Gifts

The Sun Shine Act exempts educational material provided for the benefit of patients, rebates and discounts, loans of covered devices, items provided under warranty, dividend or investment interests in a publicly‐traded security or mutual fund, and payments made to a physician who is a patient, or an employee of the reporting company.

In addition, the law exempts payments less than $10 until the aggregate annual total per company, per covered recipient,reaches $100, at which point all payments (retroactively) must be disclosed.Prescription drug and device samples are also exempted from the Sunshine provision.

Non‐Compliance Penalties

The law requires manufacturers and group purchasing organizations to disclose physician ownership or investment interest. For each failure to report, fines of up to $10,000 will be applied, not to exceed $150,000 annually. For each knowing failure to report, fines of up to $100,000 will be applied, not to exceed $1,000,000 annually.

Reporting by the Applicable Manufacturers

The Applicable manufacturers must report all payments and transfers of anything of value provided to covered recipients. This includes payments or other transfers of value provided indirectly to covered recipients through third parties, if the applicable manufacturer is aware of the covered recipients' identities.

Information that must be included

• Name of the reporting entity;
• Name of the covered recipient;
• Business address of the covered recipient;
• Specialty (only for physicians);
• NPI number (only for physicians);
• Amount of payment;
• Date of payment;
• Nature of payment; and
• Name of associated covered drug, device, biological or medical supply.

"Form" of the payment, will be selected from the following:

• Cash or a cash equivalent;
• In‐kind items or services; or
• Stock, a stock option, ownership interest, dividend, profit, or other return on investment.