As you may know, medical practitioners are subject to a federal law that makes it a felony to influence the referral of federal health care business, including Medicare and Medicaid.
For example, if a physician refers a patient to a specialist and receives part of the specialist's Medicare payment in exchange, the doctor has committed a felony under the Anti-Kickback Statute and could be subject to criminal and civil charges. The physician could also be excluded from Medicare and other federally funded health care programs.
But you may not be aware that the law includes medical providers who accept other items of value, such as drug samples, durable medical equipment or certain favorable lease terms in exchange for a referral.
Rental agreements are one area of major concern. The federal Office of the Inspector General (OIG) is so concerned about the potential for abuse that it issued a special fraud alert on the subject of suppliers who provide health care items or services and rent space in the offices of physicians or other practitioners. The alert outlines the safe harbor steps required to ensure that a rental contract is legal:
When examining rental payments, the OIG determines whether payment is appropriate at all. Payments of "rent" for space that traditionally has been provided for free, or at a nominal charge, such as consignment closets for durable-medical equipment, may be disguised kickbacks. "In general, rental payments for consignment closets in physicians' offices are suspect," according to the OIG.
Another questionable rental arrangement cited by the OIG involves mobile diagnostic equipment suppliers who perform diagnostic related tests in physicians' offices.
Violations of the Anti-Kickback Statute are punishable by up to five years in prison, criminal fines up to $25,000, administrative civil money penalties up to $50,000 and exclusion from participation in federal health care programs.
Get professional help to ensure that your rentals and other business practices meet the requirements of the kickback laws. For more information, click here to read the OIG Special Fraud Alert.