On May 7, 2018, the Health and Human Services Office of Inspector General (OIG) issued a favorable Advisory Opinion in which it permitted a medical device company (Requestor) to provide free sample ostomy products and conduct follow-up customer satisfaction surveys (Arrangement).
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OIG Advisory Opinion Allows Medical Center to Share Cost Savings with Neurosurgeons for Curbing Spinal Fusion Surgery Costs
On January 5, 2018, the Health and Human Services Office of Inspector General (OIG) posted a favorable Advisory Opinion, permitting an arrangement involving payment by a Medical Center to a multi-specialty physician Group for cost-reduction measures achieved through the efforts of certain Neurosurgeons, relating to the selection and use of products during spinal fusion surgeries (Program). Payment under the Program was calculated as a percentage of cost savings realized by the Medical Center over a three-year period. Though not yet paid at the time of the OIG advisory opinion, the amounts were to be paid to the Group through a Medical Center Subsidiary tasked with administering the Program, utilizing a Program Administrator. A portion of the payment made to the Group would be distributed to participating Neurosurgeons based on pre-existing contractual provisions with the Group that provided payment for personally-performed services. The Program Administrator was being paid a fixed monthly fee for services rendered, an amount not tied to cost savings or compensation paid to the Group.
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OIG Advisory Opinion Allows Pilot Collaborative Program Proposed by Pharmaceutical Manufacturer for Medication Therapy Management Interventions
On December 11, 2017, the Health and Human Services Office of Inspector General (OIG) posted a favorable Advisory Opinion, permitting a proposed pilot Program involving a collaboration between a pharmaceutical manufacturer (the Requestor), a trade association (Association), a Medicare Advantage Part D plan (MA Plan), a Hospital System, and a Vendor. As proposed, the program would provide new technology to allow real-time access to patient discharge information for use by MA Plan pharmacists who conduct medication therapy management (MTM) services.
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Third Circuit Holds that Medical Resident Can Bring Title IX Claim Against Private Teaching Hospital
In Doe v. Mercy Catholic Med. Ctr., No. 16-1247 (March 7, 2015), the U.S. Court of Appeals for the Third Circuit held that a private teaching hospital operating a residency program can be held liable under Title IX for sex discrimination.
The plaintiff was a resident in Mercy’s accredited diagnostic radiology residency program, which is affiliated with Drexel University’s College of Medicine. She claimed that the director of Mercy’s residency program sexually harassed her, and that the harassment interfered with her medical training. The plaintiff also claimed that after she reported the director’s conduct to the human resources department, the director and other Mercy representatives subjected to her retaliatory behavior that eventually resulted in her dismissal from the program. The plaintiff filed suit against Mercy alleging, among other things, quid pro quo sexual harassment, hostile environment sexual harassment, and retaliation in violation of Title IX.
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TCPA Violations Claimed Against San Diego Hospital
Rady Children’s Hospital-San Diego (Hospital) was hit with a proposed class action in California federal court this week for alleged violations of the Telephone Consumer Protection Act (TCPA) for autodialed debt-collection calls to consumers’ cell phones. The complaint states that “[the Hospital], either directly or through their agents, illegally contacted plaintiffs and the class members…