Legal/Fraud/Abuse Flashcards
Medicare Anti-Kickback Statute
- Short defn: you cannot pay for referrals
- can’t pay physicians to refer pts to PT (both parties in trouble)
- “prohibits knowingly and willfully soliciting, receiving, offering, or paying any remuneration directly or indirectly, overtly or covertly, in cash or kind, in return for referring an individual to a person for the furnishing or arranging for the furnishing of any item or service for which payment may be made in whole or in part under Medicare or Medicaid”
Safe Harbors (Examples)
- investments interests
- space rental
- equipment rental
- personal services (management contracts)
- sale of practice
- referral services
- warranties
- discounts
- employee compensation must be based on local market
- group purchasing organizations
- physician recruitment and relocation
- investment in underserved areas
- OB/GYN malpractice insurance subsidies in underserved areas
- investments in group practices and ASCs
- Cooperative hospital service organizations
Safe Market Defn
-can engage in monetary transaction, if you’re careful
For us: space rental, equipment rental, staff
Safe Harbors are not ______
-a guarantee of safety
Safe harbors should always have an______
- arm’s length written contract/agreement
- not just a handshake
Safe harbors: should always use ________ when purchasing anything from physician or physician purchases anything from you
-fair market value
don’t give them discounts just because, government will think you’re up to something
When billing, pay attention to not only what is billed by the provider but ____
- what is billed on behalf of the provider
- (PTAs, office manager etc)
Examples of Fraud
- bill for services not received
- bill for equip never provided
- using another person’s medicare card to get care, equip, supplies
- bills medicare for home medical equip after it’s been returned
- company offers medicare drug plan that has not been approved by medicare
- a company uses false info to mislead beneficiary to join medicare replacement plan
Civil False Claims Act
-the statute under which medicare/medicaid fraud is prosecuted
Elements of Civil False Claims Act
- submission of a claim for payment to Medicare
- claim was false/fraudulent
- claimant acted knowingly
Civil False Claims Act Prohibits
- using a false record to secure payment for a claim
- conspiring to secure payment for a false claim
Triple Damages
- civil
- 3 times the amount of damages which the government sustained because of the act of that person
- potential criminal penalties
Qui Tam Action
- whistleblower action
- most frequent way Medicare is getting reports of fraud/abuse
- lawsuit where employee in company reports fraud/abuse
- if you whistle blow your company and the government wins case, you can get part of the settlement
Corporate Compliance Programs
- most hospitals and national chains have corporate compliance departments
- monitor federal law and rules/regs
- to protect the organization, not necessarily the individual
OIG
-office of inspector general
Reason for Tax Exempt Status
- government allows hospitals to be tax-exempt in order for them to use the money for community benefit
- profits must be put back into the organization
Inurement can be:
- money
- payment in kind, such as for continuing edu
- low rent or rent-free office space
Inurement
-
Stark 2 Law
- intent to prevent physician ownership of PT/OT clinics, DME companies, O2 suppliers, & hospital inpatient or outpatient services
- has large loopholes and exceptions
Starks 2 Law Loopholes
- physicians can own PT and OT clinics as long as they’re in the physician clinic and physician bills those as incident to his own
- still must be performed by PT, OT, SLP (PTA can’t work directly under physician and bill medicare)
Negligent Torts
-failure to use such care as a reasonably prudent and careful person would use under the same or similar circumstances
(malfeasance, misfeasance, nonfeasance)
Malfeasance
-doing something stupid that one is not supposed to do
(outside practice act)
ex. PT treating appendicitis with surgery