Regulators Toughen Up on Doctors

Large commercial companies have never fared well when offering kickbacks to physicians. Historically, regulators have aggressively pursued such wrongdoers for their attempts to interfere with sound medical judgment. Physicians, on the other hand, have often gone unprosecuted for their involvement in kickback schemes.

However, according to the general counsel to the Department of Health and Human Services inspector general, Lewis Morris, the tide has turned as more doctors are beginning to receive greater scrutiny from regulators. Some of the arrangements coming under examination include medical directorships, consultancies, and ownership stakes in side businesses. Morris noted that, “one of the things we think is a truism is that it takes two to have a kickback.” In order to justly penalize all parties involved, regulators have begun basing their settlements with the wrongdoing companies on the entities’ agreements to cooperate with the government in the prosecution of payment-seeking physicians.

For more information on how to avoid becoming a target of a governmental investigation, please contact Robert S. Iwrey, Esq., and for assistance regarding Stark and AKS, please contact Adrienne Dresevic, Esq. or Carey F. Kalmowitz, Esq., or visit the HLP website. All three attorneys may be reached at (248) 996-8510 or (212) 734-0128.