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The Sunshine Act entitled was included in the Patient Protection and Affordable Care Act and signed into the law on March 23, 2010 by President Obama. The Physician Payments Sunshine provisions in health care reform legislation require drug and medical device manufacturers to publicly report gifts and payments made to physicians and teaching hospitals.

Sun Shine Act is the part of the health care reform act that will require pharmaceutical and medical device companies to report their payments to physicians and other healthcare workers and organizations. It appears likely that industry will have to disclose payments received by physicians for their participation in CME programs.

Must Report

  • Name and address of recipient
  • Amount and form of payment
  • Nature of payment (14 categories)
  • Name of "covered" drug/device to which payment relates

Sun Shine Act Competitive Benefits:

Dashboards for physicians to review or contest expenses, and easily adjudicate disputes which could be an excellent corporate differentiator. A right platform for providing the right manner to disclose expenses. A company can showcase that they spent millions on research and conferences to incubate drugs to address emerging diseases, and so forth.

Correlate medical data with marketing and sales information, giving companies a better idea of how to invest; for instance, they can determine if they've overinvested in a specific area, or if they can boost returns by investing elsewhere.

Disclosure of Payments

The health care reform law requires disclosure of payments whether cash or in kind transfers to all covered recipients including: compensation; food, entertainment or gifts; travel; consulting fees; honoraria; research funding or grants; education or conference funding; stocks or stock options; ownership or investment interest; royalties or licenses; charitable contributions; and any other transfer of value as described by the secretary.

Reporting companies are required to report the receiving physician's name, address, and national provider identifier; and the value, date, form and nature of the payment using standardized descriptions for the payment types listed above. Where a payment is related to marketing, education, or research specific to a covered drug, device, biological or medical supply, the name of that product must be reported. All of this information, except for national provider identifiers, will be available to the public.


Nature of the Payment & What is excluded from the payment

Main Goal of Sun Shine Act & Synopsis


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