In its campaign against the corruption of medical decision making and illegal kickbacks, the Department of Justice (“DOJ”) has increasingly come to rely upon two pieces of legislation together with the Federal Anti-Kickback Statute (“AKS”): the Federal Travel Act and the Eliminating Kickbacks in Recovery Act (“EKRA”). The Travel Act provides that “whoever travels in interstate or foreign commerce or uses the mail or any facility in interstate or foreign commerce” with the intent to “distribute proceeds of an unlawful activity” or “promote, manage, establish, carry on, or facilitate the promotion, management, establishment, or carrying on of an unlawful activity” shall be subject to criminal penalties. EKRA prohibits knowingly and willfully soliciting, receiving, paying, or offering remuneration in exchange for referring to, inducing a referral of an individual to, or using the services of a recovery home, clinical treatment facility, or laboratory.
In a new article published in Medical Economics, Frier Levitt attorneys Arielle T. Miliambro, Maria F. Paniscotti, and Matthew A. Benzoni discuss examples of recent convictions under the Travel Act and EKRA, cautioning healthcare providers to remain compliant with other federal legislation beyond the AKS. It is critical that all stakeholders, including health care providers, laboratories, and their marketing agents, understand the implications of the Federal Travel Act and EKRA on their business arrangements and review their compliance within the parameters of these laws to avoid similar convictions.
