Compliance Alert: Kickbacks and Conspiracies

Five people were recently charged for their roles in a $65 Million conspiracy to defraud federal healthcare programs. 

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Owners of multiple orthotic brace suppliers and marketing companies were charged for potential involvement in a kickback and bribery scheme. 

The scheme revolved around ordering unnecessary orthotic braces for Medicare beneficiaries. 

The total cost of the scheme to various federal healthcare payors was approximately $65 Million. 

Several of the individuals operated marketing call centers to entice individuals to get the braces. They also created sham invoices. 

Health care fraud and conspiracy to commit health care fraud are punishable by a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross profit or loss caused by the offense, whichever is greater. 

While this alleged scheme is egregious, it serves as a good reminder to make sure your practice is operating in full compliance. 

Even smaller scale offenses and violations carry steep penalties and potential prison time. 

We help our clients make sure that their compliance plans are up to date, their staff is adequately trained, and their billing is accurate. 

It is essential to work with your healthcare attorney to help perform billing and coding audits to catch potential violations. 

If you need help with your compliance plan, employee training, audits, or other needs, contact Rickard & Associates today!

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