Attorneys

• Robert J. Saner II

OIG Special Advisory Bulletin: Practices of Business Consultants

On June 27, 2001, the Department of Health and Human Services Office of Inspector General ("OIG") testified before Congress and issued a Special Advisory Bulletin warning of certain improper practices engaged in by business consultants, including accountants, attorneys, business advisors, and reimbursement specialists. While the OIG acknowledged that "most consultants, like most providers, are honest" and the "vast majority of relationships between providers and consultants are legitimate business activities," the OIG indicated that it has identified certain practices that abuse or encourage abuse of the Medicare and Medicaid programs. These practices expose both consultants and their clients to potential legal liability.

Among the "questionable practices" of consultants identified by the OIG to pose liability concerns for the consultant and the provider involved are: (1) misleading statements or representations by consultants about their relationship with the Medicare program, the Centers for Medicare and Medicaid Services ("CMS") (formerly the Health Care Financing Administration), the Department of Health and Human Services, or the OIG; (2) explicit or implicit statements by consultants that guarantee unreasonable or improbable results; (3) encouragement of aggressive or abusive billing practices, and (4) discouragement of compliance efforts.

The Special Advisory Bulletin is posted on the OIG's website at www.os.dhhs.gov/progorg/oig/frdalrt/consultants.pdf. If you have any questions concerning the applicability of this Special Advisory Bulletin to your particular arrangements, or if you would like to discuss issues related to Medicare or Medicaid fraud and abuse law, please call Bob Saner, Marla Spindel or Anthony Russo, or the attorney with whom you regularly work at our firm. We can be reached at (202) 466-6550.