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House Ways & Means Health Chair Introduces Draft Legislation Impacting RAC Audits and Short-Term Hospital Admissions

On November 19, 2014, the House Ways & Means health subcommittee Chair Kevin Brady (R-TX) introduced draft legislation that would revamp the Medicare payment structure for short-term hospital admissions, aiming to resolve the backlog of appeals and to improve the current Recovery Audit Contractor (“RAC”) program. The draft bill–called the…

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PSC Challenges Ruling Implicating RAC Contract Awards

On November 7, 2014, the Professional Services Council (“PSC”), a national trade association of the government technology and professional services industry, filed an amicus brief with the U.S. Court of Appeals for the Federal Circuit to overturn a ruling which would allow Centers for Medicare and Medicaid (“CMS”) to modify…

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Wall Street Journal Article Highlights Increased Scrutiny on In-Office Ancillary Services But Incorrectly Calls This a Loophole

Over the years, there have been attempts to limit the “in-office ancillary services” exception to the physician self-referral law (the “Stark Law”). We have addressed a number of these attempts on our blog (see, for example, Imaging Self-Referrals Could Raise Costs, Hurt Patients, GAO Report Says and Congressional Bill Introduced…

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The Sunshine Act: Providers Should Correct Disputed 2013 Open Payments Data By October 31st

On September 30, 2014, the Centers for Medicare & Medicaid Services released the first round of “open payments” data pursuant to the Sunshine Act. Currently, the Open Payments Program lists data on consulting fees, research grants, travel reimbursements, and other gifts the healthcare industry provided to physicians and teaching hospitals…

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Cardiologists Settle False Claims Act Allegations Stemming From Sham Management Agreements with a Hospital

On October 21, 2014, the U.S. Department of Justice (“DOJ“) announced that two Kentucky-based cardiologists agreed to pay $380,000 to resolve qui tam allegations of purported Stark Law and Anti-Kickback Statute violations (thereby resulting in a False Claims Act violation). The cardiologists purportedly entered into sham management agreements with a…

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New Compounding Pharmacy Law In Michigan

On June 28, 2014, Governor Snyder signed a new comprehensive law imposing significant regulations on compounding pharmacies and pharmacists that compound both sterile and non-sterile pharmaceuticals including criminal sanctions for certain violations. This new law took September 26, 2014 (i.e., 90 days from the date it was signed into law).…

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The OIG Proposes Revisions to the Safe Harbors Under the Anti-Kickback Statute, and to the Civil Monetary Penalties Rules on Beneficiary Inducements and Gainsharing.

On October 3, 2014, the Office of Inspector General published a proposed rule to amend the safe harbors under the Anti-Kickback Statute, as well as to revise the definition of “remuneration” under the Civil Monetary Penalties regulations and add a gainsharing CMP provision into the regulations. If adopted, the final…

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DOJ to Scrutinize False Claims Act Investigations and Lawsuits for Criminal Conduct

The Department of Justice’s (“DOJ“) Criminal Division announced, through its Assistant Attorney General, Leslie R. Caldwell, that the DOJ is closely scrutinizing civil False Claims Act investigations and lawsuits for criminal conduct. Speaking at the Taxpayers Against Fraud Education Fund’s annual conference in Washington D.C., Ms. Caldwell asked attorneys contemplating…