OIG issues advisory opinion on telemedicine networks
OIG issues advisory opinion on telemedicine networks
In its latest advisory opinion, the Department of Health and Human Services’ (HHS) Office of Inspector General (OIG) asserted that while a rural telemedicine arrangement could potentially involve prohibited remuneration if the requisite intent to induce referrals were present, it would not impose sanctions.
Specifically, the unnamed requester inquired whether the use of federal grant funds and the continued operation of the telemedicine network after the expiration of the grant period would constitute grounds for the imposition of sanctions for violations of the anti-kickback statute.
The OIG concluded that the arrangement could potentially involve prohibited remuneration under section if the requisite intent to induce referrals were present. But the OIG said will not impose sanctions on the arrangement, which was described as a telemedicine network organized by Health System A and 10 outlying rural facilities and funded in part through two Telemedicine Grant Program grants.
According to the OIG, a key component of the operation and continuation of the Telemedicine Network is the evolving system of reimbursement for telemedicine services. Historically, it said, Medicare has reimbursed only those telemedicine applications where, under conventional health care delivery methods, the medical services do not require face-to-face, "hands-on" contact between patient and physician.
"We have stated often our view that a gift to an existing or potential referral source that has independent value to such sources implicates the anti-kickback statute and may be unlawful if the donor of the gift has the requisite intent to induce Federal health care program referrals," said the OIG.
However, the OIG said the arrangement presents an opportunity for community benefit through the study and development of telemedicine. The OIG concluded that the arrangement could potentially involve prohibited remuneration if the requisite intent to induce referrals were present, but said it would not would not impose sanctions on Health System A.
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