Compliance News Roundup: Civil Monetary Penalties We'd All Like to Avoid

1. Grenada Lake Medical Center to Pay More Than $1.1 Million to Resolve False Claims Act Allegations Involving Medically Unnecessary Psychotherapy Services – “The Justice Department announced today that Grenada Lakes Medical Center (GLMC), a publicly-owned hospital which at various times has been operated by the University of Mississippi Medical Center and by the Grenada Lake Medical Center Board of Trustees, has agreed to pay more than $1.1 million to resolve False Claims Act allegations that the hospital sought and received reimbursement from Medicare for services that were not medically reasonable or necessary.” Get the full scoop >>

2. Northwest ENT Associates, P.C. to pay approximately $1.2 million to resolve False Claims Act allegations – “A Marietta, Georgia based professional corporation, has agreed to pay $1,195,361 to resolve allegations that it violated the False Claims Act by submitting claims for sinus dilation procedures in which it reused balloon catheters that were intended for single use only.” Get the full scoop >>

3. Deeper Than the Headlines: Civil Monetary Penalties We’d Like to Avoid – “Remember that the Office of Inspector General (OIG) has the authority to seek civil monetary penalties (CMPs), assessments, and exclusion against an individual or entity based on a wide variety of prohibited conduct. If a CMP case is resolved through a settlement agreement, the settling party has contested the OIG's allegations and denied any liability. In those scenarios, no CMP judgment or finding of liability has been made against the settling party. But there is still much to learn from such situations. The settlements tend to be for less money but for small practices or organizations, the legal costs, the disruption of operations and the settlement amounts are significant, especially when considering that standard compliance program activities probably could have prevented them from happening in the first place. This week, let’s dive deeper into the headlines and look at a few recent examples. Get the full scoop >>