HMGT 320-372 Discussion Week 3 - HMGT 372 Legal and Ethical...

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HMGT 372 Legal and Ethical Issues in Health Care Week 3 Discussion 1 Kickbacks in the delivery of health care. From the readings and independent research, find two specific real life examples of how kickback arrangements would violate the Stark Law and discuss with your colleagues how the kickback arrangements could violate trust between provider organizations and patients. Consider using the terms transparency, patient choice, and informed consent. Read the background articles but this discussion will take research beyond the above articles. Infirmary Health System (2014) In July 2014, the government announced that Alabama-based Infirmary Health System agreed to pay $24.5 million to resolve claims that it violated the False Claims Act by paying a group of physicians a percentage of the Medicare payments Infirmary received for tests and procedures referred by the physicians. The whistleblower was awarded $4.4 million under the whistleblower or “qui tam” provisions of the False Claims Act - See more at: - tam/healthcare/stark-law-for-whistleblowers/#sthash.olA0FCer.dpuf Halifax Hospital Medical Center (2014) On March 11, 2014, the Department of Justice announced that Halifax Hospital agreed to pay $85 million to settle claims that the hospital entered into contracts with six medical oncologists that provided an incentive bonus that improperly included the value of prescription drugs and tests that the oncologists ordered and Halifax billed to Medicare. The settlement also included claims that that Halifax paid three neurosurgeons more than the fair market value of their work. The whistleblower, a former compliance employee of the hospital, was awarded $20.8 million under the whistleblower or “qui tam” provisions of the False Claims Act. - See more at: - whistleblowers/#sthash.olA0FCer.dpuf Transparency in Physician-Industry Relationships- Although some physicians believe that free lunches, subsidized trips, and gifts do not affect their medical judgment, research shows that these types of perquisites can influence prescribing practices. Recent pharmaceutical company settlements with the

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