In recent months, physicians, pharmacists, other healthcare providers have seen an unprecedented increase in criminal and civil penalties. Many of these missteps involve violations of the Anti-Kickback Statute (AKS), which is a criminal statute prohibiting individuals from knowingly and willfully soliciting or receiving remuneration in return for a referral for the furnishing of a drug or service for which payment may be made under a federal health care program. Oftentimes, initial arrests of healthcare providers accused of violating the AKS are accompanied by raids of homes and offices, seizures of cash, bank accounts, and vehicles, and government-issued press releases. The initial arrest may be followed by detention while awaiting trial, or by jail time in the event of a conviction or guilty plea. In addition to jail time, fines, forfeitures, supervised release, and community service, providers also face the prospect of becoming an “excluded provider,” as well as either license suspension or termination. Further, these arrest and judgments are “reportable” on applications for employment and licensing.
One recent example includes a physician sentenced to a year in prison after pleading guilty to accepting kickbacks from two marketing representatives in exchange for referring patients to laboratories. The physician was sentenced to two years of supervised release, a fine of $1000, as well as a forfeiture judgment of $25,000. Both marketers plead guilty to conspiracy to pay kickbacks. One of the marketers was sentenced to one year in prison.
In June, another physician was sentenced to 12 months in prison after pleading guilty to accepting kickbacks for referring patients to a mobile diagnostic company in an amount in excess of $174,000. The physician referred patients in exchange for payment of his property taxes. This Physician was also ordered to forfeit the $174,000 and to pay a $6,000 fine.
In March, 2016, a physician was sentenced to nine months in prison after pleading guilty to receiving $600,000 in kickbacks in consulting fees, meals, tickets to sporting events, vacations, and the like for prescribing drugs to Medicaid patients. This physician was also required to forfeit $595,000 and perform 120 hours of community service.
These prison sentences are merely a fraction of the potential five-year sentence that may be imposed for a single violation of the AKS.
The government is more frequently seeking prison time for violations of the AKS, a trend we expect to continue in 2017.
Contact Frier Levitt to speak to an attorney.
