Open Payments Law in California : What Does Your Practice Need?

Practis Blog
open payments database in california

As of January 1, 2024, California has taken a significant step towards enhancing transparency in the healthcare sector with the implementation of a new law. This law mandates physicians in the state to provide written or electronic notice of the Open Payments database to patients during their initial office visit. Physicians are also required to display a notice in their offices and on their websites informing visitors about the Open Payments database. This move aims to foster transparency and empower patients by keeping them informed about financial relationships between healthcare providers and pharmaceutical companies.

What is the Open Payments Database?

The Open Payments database is a centralized platform that collects and publishes information about financial relationships between physicians and teaching hospitals on one side and applicable manufacturers and group purchasing organizations (GPOs) on the other. These financial relationships may include payments, gifts, or other transfers of value. The database, managed by the Centers for Medicare & Medicaid Services (CMS), is part of a broader effort to promote transparency in the healthcare industry.

Patient Notification Requirement:

Under the new California law, physicians are now obligated to provide patients with written or electronic notice of the Open Payments database at their initial office visit. This notification ensures that patients are aware of the financial interactions between their healthcare providers and relevant entities. By being informed, patients can make more educated decisions about their healthcare and be aware of any potential influences on medical decisions.

Office and Website Display Requirement:

In addition to individual patient notifications, physicians are required to prominently display a notice in their offices and on their official websites. This notice serves as a general alert to all visitors, including prospective patients, about the existence and purpose of the Open Payments database. By having this information visibly accessible, healthcare providers contribute to the overall transparency of the healthcare system.

Make Sure You’re Compliant with the Open Payments Database Notification Law

California’s implementation of the Open Payments Database Notification Law represents a way to help promote transparency in healthcare payments. If you’re a medical practice in California, be sure to contact your lawyer and get their professional recommendation for what you should do to comply. If you’re an existing Practis client in California and want to update your website, submit a help desk ticket and we will get you squared away.