Compliance Minute

In last month’s installment of “The Compliance Minute”, we spoke about gifts and remuneration.  This month’s article builds off of that message and focuses on a federal law known as the Anti-Kickback Statute (AKS).  This law was enacted in 1972 and is aimed at preventing fraud, abuse, and the improper financial relationships that can undermine the integrity of the healthcare system in the United States.  

The statute criminalizes the exchange of anything of value in return for referrals of federal healthcare business (such as those with Medicare and Medicaid).  This means that we as a company, and you as a healthcare provider cannot offer or receive “kickbacks” to gain a referral or business.  Kickbacks refer to anything of value and can take many forms besides cash, such as free rented space in a facility, expensive hotel stays and meals, and excessive compensation for medical directorships.  See page 2 of our company Code of Ethical Conduct for additional information.  

So why is this statute so important?  Kickbacks in healthcare can lead to overutilization of programs and services, increased costs, corrupt or biased medical decision making, patient steering, and unfair competition.  Should you or a business be convicted of violating this statute, criminal fines up to $100,000.00 per violation can be imposed, as well as imprisonment, and exclusion from federal healthcare programs.  

Wishing you and yours a safe and joyous holiday season.

Contact Information:

Emery Dumas, LNHA, CHC
[email protected]
248-940-5390
“We Care” Hotline: 616-975-5335 (may remain anonymous)