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Abstract

The physician-owned distributor ("POD") is one example of the various business entities that have materialized. In recent years, a hot debate has ensued over whether PODs are legitimate business arrangements that offer solutions, or instead exacerbate industry challenges and implicate improper conduct. This Note will assess both sides of the debate and take the position that the harms created by the existence of PODs dwarf any potential benefits. PODs create conflicts of interest and are susceptible to abuse, working against the goals of health care reform-improving quality, affordability, and accessibility. Part I of this Note will provide an overview of the health care status quo, the POD business model, and the legal landscape in which PODs operate. Part II will examine the problematic nature of PODs and demonstrate the need for legal clarity. In Part III, I propose that PODs should be deemed unlawful business arrangements and I recommend how to address them in the future. I conclude by reiterating that the conflicts of interest and potential for abuse stemming from PODs are not palatable, and that government action is necessary. Even if legislatures and regulatory agencies choose not to regulate PODs, one thing is for sure: PODs are in the government's crosshairs and additional enforcement actions are just over the horizon.

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