Health and Human Services Touts New Policy to Bar Executives of Companies recidivist Violators of Healthcare Fraud from Their Jobs or Industry.

June 11th, 2010 by Qui Tam

The Department of Health and Human Services has begun a policy to eject executive of companies guilty of healthcare fraud if they were in a position to stop the fraud from occurring.  The HHS policy reflects frustration with repeat offenders of healthcare fraud and acknowledges that while the government must continue to do business with some companies, their executives may be expendable.  Despite increased penalties and damages for fraud, companies still maintain an incentive to increase sales of products paid for through Medicare or Medicaid programs.  One method of increased profits fraught with pitfalls is the incentive-based compensation system, which rewards sales people for hitting targets.  Despite increased government penalties, companies have not had sufficient incentive to alter their behavior. 

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