The Office of the Inspector General (OIG) recently issued Advisory Opinion 17-01 to a health system (Requestor) for an arrangement to provide free and reduced-cost lodging and meals to financially disadvantaged patients (Proposed Arrangement). In issuing this positive opinion, the OIG applied the Access to Care exception to the prohibition on beneficiary inducements under the Civil Monetary Penalties (Beneficiary Inducement CMP).

One of the hospitals operated by the Requestor provides services to a rural and medically underserved patient population. Under the Proposed Arrangement, the Requestor would offer financially needy patients residing in rural or underserved areas free or reduced-cost lodging at a hotel near the hospital where rooms are approximately $70 per night. Requestor would also provide eligible patients free or reduced-cost meals at the hospital’s cafeteria, not exceeding $15 per overnight stay. The hospital would pay the hotel directly and would not provide cash or cash equivalents to patients.Continue Reading OIG Applies The Access To Care Exception In Favorable Advisory Opinion For Hospital Meal And Lodging Assistance Program