Corporate Compliance

Tip: Malpractice insurance subsidies

Compliance Monitor, December 12, 2007

The OIG has long been concerned that hospitals subsidizing malpractice insurance for potential referral sources may be suspect under the Anti-Kickback Statute. The OIG has established a safe harbor for medical malpractice premium subsidies provided to obstetrical care practitioners in HPSAs. Depending on the circumstances, premium support may also be structured to fit into other safe harbors. According to the OIG, hospitals should review malpractice insurance subsidy arrangements closely to ensure that there is no improper inducement to referral sources.

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