On March 28, 2013, the Office of Inspector General of the Department of Health and Human Services issued a fraud alert concerning physician owned distributorships ("PODS").

PODS are entities that are owned in whole or in part by physicians who are in a position to use medical devices distributed by the PODS in connection with the treatment of patients.

The OIG has had a long-standing concern with pods and the antikickback statute in connection with physician referrals. In this fraud alert, the OIG expressed its concern and set forth a noninclusive list of items that should be followed in connection with setting up a POD.