Marketing Traps for Healthcare Providers

/in

By Kim Stanger

Common marketing practices in other industries may be illegal in the healthcare sector. Healthcare providers should beware the following practices when marketing their services:

1. Offering gifts, rewards, or free or discounted items or services to patients. The federal Anti-Kickback Statute (“AKS”) and Civil Monetary Penalties Law (“CMPL”) generally prohibit offering anything of value to induce patients to order or receive services payable by federal healthcare programs unless the arrangement fits a regulatory safe harbor.1 Violations may result in criminal, civil and administrative penalties.2 Common marketing programs that may implicate the laws include but are not limited to: Read more

CardioNet Settlement Shows Need for Healthcare Providers to Secure Mobile Devices

/in ,

By Kim Stanger

In the first Health Insurance Portability and Accountability Act (“HIPAA”) settlement involving a wireless health services provider, CardioNet on April 24 agreed to pay $2.5 million for allegedly losing a laptop containing individual health information.

The size of this and other recent settlements demonstrates the increasingly active stance being taken by the Department of Health and Human Services Office for Civil Rights (“OCR”) on the need for organizations to implement strong, HIPAA-compliant security policies – including those involving mobile devices used for work. The settlement was based on the impermissible disclosure of unsecured electronic protected health information (“ePHI”). Read more

New Safe Harbors for Transportation Programs, Certain Cost-Sharing Waivers, and Gap Discount Programs

/in

By Kim Stanger

The OIG has issued new regulatory safe harbors that allow healthcare providers to offer government program beneficiaries certain valuable items without running afoul of the federal Anti-Kickback Statute (“AKS”). (81 F.R. 88368 (12/7/16), available here). The AKS generally prohibits offering or giving remuneration to induce or reward referrals for items or services covered by federal healthcare programs unless the transaction fits within a regulatory safe harbor. Violation of the AKS is a felony, and may result in criminal, civil and administrative penalties; accordingly, it is important to structure transactions with federal program beneficiaries and other referral sources to fit within a regulatory safe harbor if possible. Read more