OIG Advisory Opinion on Freestanding Radiation Oncology Center and Free Services to Cancer Patients

OIG has posted an advisory opinion No. 10-08 concerning two affiliated corporate entities that both operate a freestanding radiation oncology center and intend to provide to their Medicare cancer patients the services of a dietitian and social worker at no additional charge as part of their patient’s treatment.

The proposed arrangement would not generate prohibited remuneration under the anti-kickback statute because the dietitian and social worker services will be provided in the freestanding radiation oncology center setting, therefore the expenses for the services are included in the Medicare payment for the radiation oncology services. Consequently, the costs of the services would be reimbursed by Medicare and because the Requestors would not waive otherwise applicable cost-sharing obligations, the Requestors would not be providing free goods or services to Medicare beneficiaries under the proposed arrangement.

Accordingly, OIG has concluded that the proposed arrangement would not generate prohibited remuneration. Therefore, OIG will not impose administrative sanctions under sections 1128(b)(7), 1128A(a)(7) or 1128A(a)(5) of the Social Security Act.

For more information on this topic, feel free to contact Adrienne Dresevic, Esq. or Carey F. Kalmowitz, Esq. of The Health Law Partners at (248) 996-8510.

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