Special OIG Fraud Alert - Rental Of Space In Physician Offices

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The Office of Inspector General (“OIG”) of the Department of Health and Human Services has released a Special Fraud Alert pertaining to physician-landlords and persons or entities that provide health care items or services to patients that are referred either directly or indirectly by their physician-landlords. The Special Fraud Alert is in response to reports received by the OIG that suppliers, whose businesses depend on physicians’ referrals, offer and pay rental amounts, either voluntarily or in response to physicians’ requests, that are either unnecessary or in excess of the fair market value for the space to access the physicians’ potential referrals. The OIG is concerned that such arrangements may be disguised kickbacks in violation of the federal anti-kickback statute.

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