tci Part B Insider - 2003 Issue 9

FRAUD & ABUSE: OIG May Dislocate Your Joint Venture

Durable medical equipment companies won a starring role in the HHS Office of Inspector General's latest fraud guidance on joint ventures. The OIG is once again warning healthcare providers and suppliers of the kickback risks inherent in certain kinds of joint venture arrangements. In an April 23 special advisory bulletin on contractual joint ventures, the OIG states that potentially illegal business deals are proliferating in the healthcare industry. And JVs with durable medical equipment suppliers are under particular scrutiny. The OIG bulletin cites, as examples of troublesome deals, arrangements between a hospital and a DME supplier, a DME supplier...

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