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November, 2005
Volume 1,  Issue 4

(Get Print Friendly Version)
 

Welcome To BDB                                   Health & Medicine Reporter

By Priya Bathija

This issue of BDB Health & Medicine Reporter addresses a range of regulatory concerns affecting physicians, hospitals and other entities that provide health care.  David Abromowitz’s article discusses a new Special Advisory Bulletin from OIG that permits certain carefully structured gainsharing arrangements between physicians and hospitals.  Another article explains that Sarbanes-Oxley regulations are now being applied to non-profit and privately held entities, including health care organizations.  In response, Steven Armatas recommends self-regulation and the adoption of nine principles of corporate governance.  As a defense attorney, Stephen Griffin gives his point of view on medical malpractice reform

The subject of this issue’s attorney profile is Jeffrey Weinstock, an Associate in our Boca Raton office.  Jeff focuses his practice on transaction and operational issues facing health care providers, both individuals and organizations.  Our “Update” article discusses E-prescribing technology, immunity from vicarious liability, vaccinations for Medicare and Medicaid beneficiaries living in skilled nursing facilities, and regulations concerning the giving and receiving of holiday gifts. 

 

We hope that these items will help you stay current with legal developments.  If you have questions, please call any member of our Health and Medicine Practice Group.

___________________________

 

Priya Bathija is an Associate attorney and member of the Health & Medicine Practice Group.  She can be contacted at pbathija@bdblaw.com or 614.227.4282.

 


Stephen P. GriffinBy David Abromowitz

 

In the typical gainsharing arrangement, a hospital and a group of physicians enter into a written agreement under which the physicians work with the hospital to identify and then implement specific cost-saving strategies.  As a reward for their efforts to reduce costs, the hospital pays the physicians a percentage of any reduction in the hospital’s costs for patient care that is attributable to the physicians’ efforts. 

In July 1999, the Office of the Inspector General of the Department of Health and Human Services (“OIG”) threw cold water over gainsharing arrangements when it issued a Special Advisory Bulletin in which it took the position that gainsharing arrangements between hospitals and physicians are impermissible under current federal law.[1]  Specifically, the OIG stated that gainsharing arrangements constitute a violation of the civil monetary penalty law (the “CMP”), which prohibits a hospital from making payments to a physician in an effort to induce reductions or limitations of patient care services to Medicare or Medicaid beneficiaries under the physician's direct care.[2]  Additionally, the OIG noted that gainsharing arrangements may raise concerns under the anti-kickback law.[3]

Earlier this year, the OIG breathed new life into physician-hospital gainsharing arrangements, by issuing OIG Advisory Opinion 05-01.  The OIG has since issued five additional advisory opinions supporting various gainsharing arrangements between hospitals and physicians.  This article, however, discusses only the first of these OIG advisory opinions.  In Advisory Opinion 05-01, the OIG concluded that it would not impose sanctions on the requestors under either the CMP or the Anti-Kickback Statute. 

Although the OIG reiterated its previous concerns regarding the potential adverse affects of gainsharing on patient care and its potential for disguising payments for referrals, the OIG approved this specific and carefully structured cost-sharing arrangement proposed by the requesting hospital and physicians (the “requestors”). The Advisory Opinion did not address the other legal constraints on gainsharing, including the Stark physician self-referral law or the prohibitions against private inurement by tax-exempt hospital organizations.   

The Proposed Arrangement

The gainsharing arrangement discussed in the Advisory Opinion involves an acute care, non-profit hospital that participates in Medicare and Medicaid programs, and a professional association composed exclusively of cardiac surgeons with active medical staff privileges at the hospital.  The hospital proposed to share with the surgeon group a percentage of the hospital’s cost savings arising from the surgeons’ implementation of a number of cost-reduction measures in connection with certain surgical procedures.  Their Proposed Arrangement is discussed in more detail below.

 

Cost-Saving Actions

A program administrator engaged by the hospital conducted a study of the past practices at the hospital’s cardiac surgery department. The study resulted in 19 recommended cost-saving actions in the surgeon group’s operating room practices to curb the inappropriate use or waste of medical supplies. The recommendations covered the following three areas:

  • Open as needed. Fourteen recommended actions involved opening only as needed certain packaged items potentially useful during a surgical procedure, such as surgical trays.[4]
  • Substitution. Four recommendations consisted of the substitution, in whole or in part, of less costly items for the items currently being used by the surgeons in connection with surgical procedures.
  • Aprotinin use. The final suggestion would limit the use of Aprotinin, a medication currently given to many surgical patients pre-operatively to prevent hemorrhaging, only to patients that are at an elevated risk of hemorrhage as indicated by objective clinical standards.

 

Payment

The hospital proposed to pay the surgeon group 50 percent of the cost savings achieved by implementing the recommendations over a period of one year.  Cost savings would be calculated separately for each recommendation by subtracting the actual costs incurred from the costs recorded during an historical base year.

The hospital proposed to make an aggregate payment to the surgeon group based on the cost-savings formula. The surgeon group, in turn, was to distribute its profits on an individual basis to each of its member surgeons.  Under the Proposed Arrangement, the following additional limitations were to apply to the payment to the surgeon group:

  • No additional sharing of cost savings would accrue if the volume of procedures payable by a federal health care program in the year covered by the gainsharing program exceeds the volume of procedures payable by a federal health care program in the base year.
  • To minimize the surgeons’ financial incentives to steer more costly patients to other hospitals, a hospital-surgeon group committee would monitor the case severity, ages and payors of the patient population, and could terminate a surgeon from participation in the Proposed Arrangement for significant changes from historical patterns.
  • The aggregate payment to the surgeon group will not exceed 50 percent of the projected cost savings identified in the study.

 

OIG Analysis in the Advisory Opinion

As stated above, the CMP prohibits a hospital from making payments to a physician in an effort to induce reductions or limitations of patient care services to Medicare or Medicaid beneficiaries under the physician's direct care.  Applying the CMP to the Proposed Arrangement, the OIG reasoned that, the "open as needed" surgical tray recommendations would not implicate the CMP because those recommendations would not perceptibly limit or reduce the provision of items or services to patients.

According to the OIG, however, recommendations concerning the disposable cell saver, the substitution of less costly items and the use of Aprotinin constitute an inducement to reduce or limit the current medical practice at the hospital.  Therefore, these recommendations do implicate the CMP. 

Despite this implication, the OIG stated that it would not impose sanctions under the CMP because sufficient safeguards were included in other aspects of the Proposed Arrangement. To summarize those safeguards:

  • The cost-saving actions and resulting savings are clearly and separately identified, permitting public scrutiny and individual physician accountability for any adverse effect of the Proposed Arrangement.
  • The requestors have credible medical support that the implementation of their recommendations will not adversely affect patient care.
  • The payments are based on all surgeries, regardless of the patients’ insurance coverage, and are subject to a cap on payment for federal health care programs.
  • Objective historical and clinical measures establish thresholds to protect against inappropriate reductions in service.
  • Patients will receive written disclosure of the Proposed Arrangement.
  • The financial incentives are reasonably limited in duration and amount.
  • The surgeon group distributes its profits to its members on an individual basis, mitigating any incentive for an individual surgeon to generate disproportionate cost savings.

The OIG asserted that its position is an exercise of discretion and is consistent with its 1999 Special Advisory Bulletin.  According to the Advisory Opinion, the Proposed Arrangement differs from other gainsharing arrangements that were the subject of the OIG’s warning in the Special Advisory Bulletin because the Proposed Arrangement sets out the specific actions to be taken and ties the remuneration to the actual, verifiable cost savings attributable to those actions. The OIG identified the following features of gainsharing plans which heighten the risk that payments will lead to inappropriate reductions or limitations of services:

  • No demonstrable direct connection between individual actions and any reduction in the hospital’s out-of-pocket costs (and any corresponding gainsharing payment).
  • No specific identification of the individual cost-saving actions.
  • Insufficient safeguards against the risk that other unidentified actions, such as premature hospital discharges, might actually account for any savings.
  • Questionable validity and statistical significance of quality-of-care indicators.
  • No independent verification of cost savings, quality-of-care indicators, or other essential aspects of the arrangement.

The features of the Proposed Arrangement, the safeguards identified by the OIG, and the OIG’s enumeration of features that would heighten the risk of a violation, provide useful guidance for the structuring of other hospital-physician gainsharing agreements without sanction under the CMP. 

Anti-Kickback Statute Analysis

In analyzing the implications of the Proposed Agreement under the Anti-Kickback Statute, the OIG cautioned that gainsharing arrangements could be used to disguise illegal remuneration from the hospital by encouraging physicians to admit more federal health care program beneficiaries to the hospitals.  However, despite this potential risk for illegal remuneration, the OIG declined to impose administrative sanctions because of several factors that suggested the risk of fraud or abuse in these gainsharing arrangements was low.

 

Conclusions

The OIG has drawn a distinction between generalized gainsharing arrangements tied to overall cost savings, which it views as prohibited, and limited gainsharing arrangements tied to specific, identifiable, and verifiable cost savings, which it may permit on a case-by-case basis. While the OIG has cautioned that its recent advisory opinions on gainsharing should not be interpreted as throwing open the door to gainsharing arrangements, it seems likely that hospitals and physicians will be replicating these arrangements in the near future. 

However, given the relatively narrow scope of these advisory opinions and particularly the Advisory Opinion discussed above, all parties must carefully consider whether and how to implement their own gainsharing arrangements. First, only requesting parties are protected by advisory opinions, so all parties debating the implementation of a gainsharing arrangement should consider obtaining their own advisory opinions in order to receive approval from the OIG. 

Second, the existing advisory opinions do not address how, or if, gainsharing arrangements will be permitted under the Stark physician self-referral law. This omission is not unexpected given that CMS, not the OIG, has the authority to interpret the Stark law. Therefore, all parties must analyze independently whether their gainsharing arrangements comply with the Stark law.

While the future of gainsharing arrangements has brightened, these advisory opinions have opened the door only a crack. Without action by Congress to amend the CMP, hospitals and physicians will continue to lack the tools they need to align their economic interests with each other and reduce hospital costs.  Gainsharing arrangements will continue to be risky and, without approval from the OIG, could subject the hospital and physicians involved to penalties under both the CMP and the Anti-Kickback Statute. 


[1] Gainsharing Arrangements and CMPs for Hospital Payments to Physicians to Reduce or Limit Services to Beneficiaries (July 1999) reprinted in 64 Fed. Reg. 37,985 (July 14, 1999).

[2] 42 U.S.C. § 1320a-7a(b)(1) & (2).

[3] 42 U.S.C. § 1320a-7b(b).

[4] One "open as needed" recommendation involved not opening disposable components of the cell saver unit until a patient experiences excessive bleeding. According to the requestors, the resulting delay in cell saver readiness should not exceed two to five minutes and would not adversely affect patient care.

______________________________

 

David Abromowitz is a Partner of the Health & Medicine Practice Group.  He can be contacted at dabromowitz@bdblaw.com or 614.221.1363.

 

 

 

By:  Steven Armatas

 

Philip E. HowesThe American Competitiveness and Corporate Accountability Act of 2002, more commonly known as Sarbanes-Oxley or “SOX,” was signed into law by President Bush on July 30, 2002.  Enacted in response to the financial scandals of Enron, WorldCom, Arthur Andersen and others, SOX constitutes a far-reaching attempt to restore accountability to the business sector. 

While nearly all of its provisions currently apply only to publicly-traded companies, SOX’s tentacles are starting to reach into the governance of privately-held and non-profit entities, including hospitals and medical foundations.  In September 2004, California adopted the Non-Profit Integrity Act becoming the first state in the country to extend Sarbanes-Oxley type reforms to non-profit organizations.  Several other states, including Ohio, are considering similar legislation.  Many health care organizations have also recently felt pressure from state regulators, the media, and their own accountants, auditors and banks to implement SOX-like regulations.

In light of these developments, the following nine principles of corporate governance, which have emerged from Sarbanes-Oxley, should be strongly considered for implementation by every health care organization (“HCO”):

1.  Governing Board.  The HCO’s governing board should not serve in a mere ceremonial or honorary capacity.  Instead, it should play a significant role in overseeing the HCO’s operations in order to assure effective and ethical management.

2.  Independent Directors.  Every HCO should recruit and retain independent, non-management board members.  The staff of the U.S. Senate Finance Committee has recommended that at least one-fifth of any board be independent.  An independent board member is someone who has no prior relationship with the HCO or its management that may impair or appear to impair his ability to make independent judgments.

3.  Audit Committee.  Any HCO with significant revenues should establish an audit committee with the power, without needing the consent of the full board, to (i) retain and assure the independence of the HCO’s external auditors, (ii) review the HCO’s accounting policies and decisions, (iii) determine the adequacy of any internal record-keeping, and (iv) oversee the accuracy of the organization’s financial statements.

4.  Internal Governance.  An HCO board should have sub-committees that focus on (i) the establishment, review and periodic updating of the organization’s charter documents; (ii) the criteria, evaluation, selection and nomination of directors; and (iii) the board’s size, composition, and committee structure.

5.  Compensation Committee.  A committee of independent directors should determine the compensation of key executive officers.  Compensation decisions should not be “automatic” or merely tied to cost-of-living adjustments, but instead directly reflect the executive’s performance in meeting set goals and objectives.

6.  Disclosure of Financial Information.  Any disclosures regarding assets, activities, liabilities, and results of operations should be accurate and complete.  CEOs and CFOs should be able to certify the accuracy of these disclosures and the adequacy of their organizations’ internal controls.  The Senate Finance Committee has recommended that  Form 990 include a non-profit’s annual performance goals and the measurements for meeting same.

7.  Codes of Conduct.  HCOs should adopt and implement codes of conduct for their directors and employees reflecting the organization’s commitment to operate in strict compliance with applicable law, ethical business standards, and the entity’s governing documents.

8.  Monitoring Compliance.  An HCO should establish procedures to receive internal complaints and foster confidential and anonymous mechanisms to encourage employees to report any fraud or irregularity.  No punishment should ever be assessed against “whistleblowers,” even if their allegations ultimately prove unfounded.

9.  Document Retention.  HCOs should have express document retention policies.  For example, financial records, significant contracts, employment records and fundraising activities should be archived according to guidelines established by the organization or the IRS.  Such policies should also include rules for handling electronic files and voicemail.

In short, the migration of mandatory Sarbanes-Oxley principles to for-profit and non-profit health care institutions is inevitable.  Those organizations that await compulsory regulations will find themselves struggling and possibly unable to meet compliance deadlines.  Self-regulation and proactive behavior in this field are thus the best course of action. 

______________________________

 

Steven Armatas is a Partner of the Business Practice Group.  He can be contacted at sarmatas@bdblaw.com or 330.491.5216. 

 

 

 

Thomas R.  HimmelspachBy Stephen Griffin

It was surprising to be asked how medical malpractice reform affected defense attorneys.  It reminded me of my Division III college football career.  There was no glory in it and no one really cared we were playing, other than family and girlfriends.  As an example, I can remember asking a freshman coed whether she would be attending the game.  Her reply always stuck with me:  “I have to clean my dorm room.”  Humbling, but the game was still worth playing just for the love of it.  The point is no one really cares how a defense attorney feels about medical malpractice reform, but now that you asked . . .

Every day a medical defense lawyer protects his client from the pool of swimming sharks.  Those sharks say to the defense lawyer:  “Hey, there’s no money in what you do, why not come swim with us?”  The decision to represent physicians over plaintiffs is not based on money.  Rather, it is a deeply rooted philosophical difference.  It is another game worth playing.

Unfortunately, there are enormous negatives attached to being a defense attorney during this malpractice crisis and the advent of reform.  Philosophically, tort reform was mandatory.  Professionally, tort reform could hurt.

No matter what some elected officials and the Plaintiff’s Bar say, medical malpractice reform is worthy.  Over the past two years not a single day passed that my clients didn’t corner me to share their hardships.  The frustration was real to the point of anger.  Exposure to such daily negative energy coupled with the requisite emotional support clients need in the midst of a lawsuit places the defense attorney dangerously close to the edge of burn out.

Despite the beckoning of Plaintiffs’ Bar, I took a stand for reform.  The warning was that fewer medical malpractice cases meant fewer cases to defend.  Backing reform could cost me my subspecialty.  It also happens to be true that civil defendants will need an attorney at trial.  Since we have the best civil justice system in the world, my job is not in jeopardy.  I will always be able to make a living at counsel table.  I do not need to perpetuate a fallacy to preserve my income. 

What I found disconcerting were the accusations that defense attorneys were part of the problem.  I’ve only known one way to defend cases and I’ve been doing it for seventeen years.  Defending malpractice cases requires a prolonged battle and enormous effort.  A professional reputation and a lot of money are at stake.  To wage a half-hearted defense invites catastrophe.  I have never apologized for a bill and won’t start now.  I cannot recall a client telling me after a verdict that I was over-prepared.  Like my clients, I believe in a thorough workup before surgery. 

There have also been clients along the way implying that financial gain was the motivating factor.  Most of my clients are a lot savvier.  If financial gain was the sole motivating factor, those clients can be assured that my name would be on the Complaint not the Answer. 

At the core of my decision to support medical malpractice reform and take an active role in its passage was my family.  It stands to reason that the finest academic minds should be pursuing medicine or science.  As a father, I want those minds treating the ailments of my children.  As a believer in the free market, I know the brightest minds will pursue those opportunities offering the greatest rewards for sacrifice and accomplishment.  Malpractice premiums make the practice of medicine a bad business decision.  Not even my clients were steering their children towards medical school.  Ultimately, families lose.

I’ve wanted to represent physicians from the earliest point of my career.  Protecting doctors while they care for their patients felt worthy.  The quality of medicine was being compromised because of shortcomings in the tort system.  Appropriate reform made perfect sense to me.  If it means I have to find some new clients, that’s acceptable.  Occasionally, we all need to find a greater good than personal gain. 

______________________________

 

Stephen Griffin is a Shareholder and Co-Chair of the Health & Medicine Practice Group.  He can be contacted at sgriffin@bdblaw.com or 330.491.5262. 

 

 

 

Buckingham BocaSM

561.999.3093

jweinstock@bdblaw.com

 

Jeffrey Weinstock is an Associate who works in the Boca Raton office of Buckingham Doolittle & Burroughs.  In addition to being a member of the Health & Medicine practice group, he is part of the Firm’s Taxation & Employee Benefits and Business Law practice groups.

His membership in three practice groups reflects the breadth of Jeff’s legal knowledge. “I’m a transactional attorney and deal with transactions involving businesses in many different fields,” he explains.  “In health care, I work with a broad range of entities from individual providers to hospitals to manufacturers of health care products.  I represent them in mergers and acquisitions and all types of operational issues such as contracting, transactions, leasing and loans.”

A graduate of the University of Michigan, Jeff earned his J.D. and master’s in taxation from the University of Miami School of Law.   His interest in the health care industry began at a young age. “I’ve been surrounded by physicians since childhood.  My father, both my grandfathers, my brother and several uncles were physicians.  I was exposed to their practices and concerns, running their practices and treating their patients.  So I guess I’ve seen what concerns and special problems health care providers face.  My background made me interested in health care related issues even when I was in law school.”

Before joining the Firm, Jeff served as corporate counsel to a publicly traded health care company.  “It was a diversified company with a wide array of activities, everything from operating physical therapy clinics and an institutional pharmacy to high-tech medical devices.  I gained detailed knowledge of the unique issues faced in several different areas of the health care industry.”

Jeff brings his knowledge of the medical world and his experience in multiple fields of the health care industry to his practice.  “My clients have included physicians and physician groups, hospitals, dentists, medical device manufacturers and other types of health care entities.”

Jeff is also legal editor and occasional columnist for Ophthalmology Management magazine.  “The topics of the articles that I have written include issues that every medical practice faces, not just ophthalmologists; including what to do when records are subpoenaed, how to protect yourself when an associate has a judgment against him, and how to protect intellectual property.  These are issues my clients in all branches of health care need help with, and I enjoy advising them and giving them the support they need so that they can concentrate on doing their job well.”

 

 

Breakthrough for E-Prescribing

On October 11, 2005, the Centers for Medicare Services (“CMS”) and the Office of the Inspector General (“OIG”) proposed a new Stark exception and an Anti-Kickback Statute safe harbor on e-prescribing.  As a result, physician practices may soon be able to accept financial and technical aid for e-prescribing without triggering the Anti-Kickback Statute or Stark. 

Practically speaking, this exception and safe harbor would allow hospitals, group practices, prescription drug plan sponsors and Medicare Advantage organizations to give physicians the hardware, software and training they need to receive and transmit electronic prescription drug orders.  It will allow physicians that cannot afford e-prescribing technology to get financial help from larger providers so that these physicians can electronically send prescriptions to pharmacies.

Physicians should be aware that the exception and safe harbor apply only to electronic e-prescribing technology and do not extend to e-prescribing technology that is bundled with electronic health records technology.  It will not be possible to bundle these technologies together until CMS and the OIG create additional exceptions and safe harbors.

____________________________________

 

Hospitals May Be Immune from Vicarious Liability

In September, the Supreme Court of Ohio handed down a decision in Comer v. Risko[1], a case that is important to hospitals where doctors work as independent contractors. The ruling concerned a patient who was allegedly harmed by an independent contractor, but who failed to file a primary negligence claim against that physician within the time allowed. The court said that the patient may not pursue a lawsuit against the hospital for secondary or “vicarious” liability for the contractor’s negligence.

The claim involved an attempt by the estate of a deceased patient to pursue a negligence claim against Knox Community Hospital.  The administrator of the estate filed suit against both an individual physician and the hospital, based on the failure of two contractor physicians working at the hospital to detect a cancerous mass when they interpreted separate chest x-rays of this patient.  At a later date, after the statute of limitations had expired, the administrator included claims against the two contractor physicians.

While an employer is generally liable for injuries to third parties caused by its employees or agents in the course of their employment, Ohio law generally does not impose similar liability on a company or “principal” for negligent acts committed by independent contractors in the performance of their contractual duties.  The Supreme Court of Ohio decided, however, to narrow this exception and found that a hospital could be held liable for negligent acts of medical professionals working as contractors when: 

(1)               the hospital held itself out to the public as a provider of medical services; and

(2)               in the absence of any notice or knowledge to the contrary, a patient looked to the hospital, rather than the individual practitioner, to provide competent medical care.

In this case, Knox County Hospital argued that the hospital could be liable only when its contractors themselves were found to have acted negligently.  Therefore, since the administrator had not named the contractor physicians within the statute of limitations, the deceased patient had no legal ground on which to seek damages from either the hospital or the two contractor physicians.

After the case had worked its way through appeals, the Supreme Court of Ohio accepted Knox County Hospital’s contentions and held that if the independent contractor is not and cannot be liable because of the expiration of the statute of limitations, no potential liability exists to flow through the secondary party, i.e., the hospital.


[1] Comer v. Risko, 2005-Ohio-4559 (2005).

On Thursday, June 30, 2005, Governor Taft signed H.B. 66, the state’s biennial budget bill for fiscal years 2006-2007.  The Governor vetoed 27 items in the bill, including two long-term-care-related items.  For a complete analysis of the long-term care provisions and related items visit:  www.ohca.org/uploads/news/05budgetanalysis.pdf.

____________________________________

 

Immunization Requirements

As of October 7, 2005, skilled nursing facilities (SNFs) serving Medicare and Medicaid beneficiaries are required to provide immunizations against influenza and pneumococcal disease to all of their residents.  SNFs will be required to offer the immunizations as a condition of participation in the two programs.

The rule requires that each resident be offered timely influenza immunizations and the lifetime pneumococcal vaccination unless:

(1)               vaccination was medically contraindicated because of the resident’s medical condition;

(2)               the resident personally or through a representative refused the treatment after education and consultation about the benefits of vaccination; or

(3)               the resident has already been vaccinated.

Before offering the immunizations, SNFs must ensure that each resident, or the resident’s legal representative, received education regarding the benefits and potential side effects of immunizations.  SNFs must also document the administration of an annual influenza vaccination in each resident’s medical record. 

Special Note:  CMS may exercise its enforcement discretion even if facilities are out-of-compliance with this requirement because a vaccine shortage meant they were unable to obtain vaccine for their residents.

 

 

OFFICE OF INSPECTOR

GENERAL UPDATES

 

Holiday Gifts and Government Regulations

Gifts to business partners and patients are a festive way to say thank you and wish them happy holidays, but if the OIG thinks your gift is an attempt to induce referrals, or if your gift is too large, you could be spending the new year battling Anti-Kickback and Stark allegations. There are, however, several steps that you can take this holiday season to continue gift giving while avoiding problems. 

Stark’s exceptions for gift giving and receiving:  Under Stark’s “de minimus compensation” exception, hospitals, manufacturers and other entities can give physicians gifts as long as they are under $50 each and are not cash or cash equivalents—such as gift certificates, stocks, or something the physician needs, like free medical supplies or equipment.  The total value of gifts to or from one entity cannot exceed $300 per physician each year. 

Ensuring gifts don’t trigger the Anti-Kickback Statute:  Unlike Stark, the Anti-Kickback Statute offers no safe harbors for holiday gift giving or receiving.  Therefore, you must review each situation and ensure there is no intent to induce referrals or business.  If you suspect that a gift giver may expect referrals in exchange for a gift, respectfully return the gift and explain that is it against your compliance policy to accept gifts that might compromise your practice’s position.

Gifts to patients:  You should also exercise caution when giving gifts to patients, particularly those who are Medicare of Medicaid beneficiaries, in order to avoid the implication that your generosity is an attempt to influence a beneficiary’s provider or supplier selection.  Gifts and free services to patients should not cost more than $10 per time and should not exceed $50 per year, according to the OIG. 

 

 

 

KUDOS                                                                                                

 

Thomas W. HessThomas W. Hess, Buckingham ColumbusSM, was recently appointed to the Board of Directors of the Northeastern Ohio Universities College of Medicine (NEOUCOM).

 

 

_______________________________

 

Shila NalawadiShila Nalawadi, Buckingham CantonSM,and Justin Greenfelder, Buckingham CantonSM, recently participated in the Stark County MedicalThomas W. Hess Society Mini-Internship program.  They shadowed area physicians in their practice for a day and were able to interact with them and patients, as well as observed a few surgeries.  It was a first-class program that allowed some prominent people from different walks of life to observe the medical profession and have some great interaction regarding the current state of the medical profession.

 

 

 

Thomas W. HessNovember 30, 2005 - David Abromowitz, Buckingham ColumbusSM, will be speaking to the Akron General Hospital Center for Family Medicine.  His topic will be "Physician Contracts."

 

 

_______________________________

 

Thomas W. HessPriya Bathija, Buckingham ColumbusSM, wrote an article for "Briefs," which is a quarterly publication of the Columbus Bar Association.  Her article is entitled, "An Overview of Attorney Trust Accounts."

 

 

_______________________________

 

Thomas W. HessJoseph Feltes, Buckingham CantonSM, wrote an article for the September issue of Ophthalmology Management.  His article is entitled, "Going Bare?," which discusses the consequences of not having medical malpractice insurance.

 

 

_______________________________

 

Thomas W. HessThomas W. Hess, Buckingham ColumbusSM,and G. Brenda Coey, Buckingham CantonSM, spoke at the AOPHA Annual Convention.  TheirThomas W. Hess topic was "How to Conduct a Resident Abuse & Neglect Investigation."  Ms. Coey also gave a presentation to the OHCA on "Documenting to Minimize Liability."  She will be speaking on November 4, 2005 on "Legal Documentation."  Mr. Hess also presented at an Ohio Centers for Assisted Living seminar.  His topic was "Advance Directive," and he will be making this same presentation at an Ohio Health Care Association seminar. 

_______________________________

 

Shila NalawadiNovember 17-18, 2005 - Richard Milligan, Buckingham CantonSM,will be presenting to the AultCare Provider Physicians Conference.  The title of the presentations are "Tort Reform - Is it Making a Difference?" and "Understanding and Avoiding Medical Malpractice Risk."

 

_______________________________

 

Shila NalawadiSusan Rank, Buckingham CantonSM, wrote an article for the October, 2005 issue of Employee Benefit Plan Review.  The article is entitled, "Between a Rock and a Hard Place:  Self Audits Under the Fair Labor Standards Act."

 

 

If you are interested in obtaining information on upcoming seminars or would be interested in having speakers from BDB make a presentation to your organization, please contact: Lorna J. Henderson, Client Relations Administrator, at 800.686.2825 ext. 86473 or lhenderson@bdblaw.com.

www.bdblaw.com
1.800.686.2825 - Buckingham Akron SM
1.800.682.2825 - Buckingham Boca Raton SM
1.888.811.2825 - Buckingham Canton SM
1.888.843.2825 - Buckingham Cleveland SM
1.888.686.2825 - Buckingham Columbus SM

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