HHS warns providers against gainsharing’
A recent special advisory bulletin from federal regulators warns hospitals against rewarding physicians for their efforts to reduce costs by passing along a share of Medicare cost savings to them.
The Health and Human Services Office of Inspector General acknowledges that hospitals have a legitimate interest in getting physicians to assist in eliminating unnecessary costs; however, federal law prohibits so-called "gainsharing," the practice of hospitals paying physicians to reduce or limit care to Medicare and Medicaid patients.
"[G]ainsharing could pose a risk of abuse, could adversely affect patient care, and could be manipulated to reward physicians for patient referrals," stated Inspector General June Gibbs Brown. Providers can be fined for knowingly making such payments.
For more information on this advisory, access Foley & Lardner Law Watch on the Internet (www.foleylardner.com) for the item OIG Declares Gainsharing Illegal for Medicare and Medicaid Patients.
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