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Compliance Update
"New Start" Reviews and Activities Affecting Post-Acute Providers in OIG's 2012 Work Plan Print E-mail
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Wednesday, 26 October 2011 00:00
   The Office of Inspector General recently released its work plan for fiscal year 2012, which includes a number of "new start" reviews and activities that it plans to pursue during the next 12 months and beyond with respect to U.S. Department of Health & Human Services programs affecting post-acute providers.

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Last Updated on Thursday, 27 October 2011 09:54
Ways & Means Committee Holds Hearing on Hospital Consolidation and Physician Integration Print E-mail
Written by Jeffrey Herschler   
Wednesday, 12 October 2011 00:00

One of the primary objectives of the recently enacted health reform legislation was to promote hospital and physician alignment, coordination and integration.  Unsurprisingly, hospitals and physicians have responded to these new incentives with increased merger activity and other integration strategies.  Now, in an unexpected twist, the usually business-friendly, Republican-controlled U.S. House of Representatives Committee on Ways and Means is examining consolidation activity within the health industry to determine the effect these transactions are having on efficiency and health care costs.

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Last Updated on Thursday, 13 October 2011 09:57
Consignment Closets: Still a Viable Option for DME Providers Print E-mail
Written by Albert R. Meyer & Jeffrey L. Cohen   
Wednesday, 07 September 2011 16:50

In the age of heightened regulatory scrutiny, physicians and other health care providers often question whether "Consignment Closet" relationships are legal.  If properly structured these arrangements are not only legal but are of great benefit to patients needing valuable medical devices.  A properly structured relationship will, in all probability, withstand a regulatory challenge by the Office of Inspector General or from other regulatory authorities. 

Consignment Closets or "Stock and Bill" arrangements are used by many durable medical equipment, prosthetics and orthotics suppliers ("DMEPOS").  The DMEPOS supplier places inventory in space rented from a physician's office.  This allows the patient to immediately receive equipment or devices that they need as they leave the physician's office.  The DMEPOS company, not the physician, bills the patient or the patient's insurance carrier (or other third party payor) for the device.  In proper Consignment Closet models the patient should never be forced to obtain devices from the physician's office and are free to use the supplier of his/her choice.  When a patient chooses to obtain the device at the physician's office the physician's staff will instruct the patient on the use of the device or "fit" a brace or other product provided.  The DMEPOS supplier will compensate the physician's office for this service, as well as for administrative services provided by the physician's office staff for providing billing information to the DMEPOS supplier.  The DMEPOS supplier also rents from the physician the space in the physician's office where the DMEPOS supplier's inventory is stored

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Mr. Cohen and Mr. Meyer have over 45 years of combined healthcare legal experience, and have advised clients all over the United States regarding M.D./D.C. arrangements.  With an extensive background in transactional healthcare and corporate matters, particularly as they relate to physicians, the Florida Healthcare Law Firm is immersed in regulatory, contract, corporate, compliance and employment related matters of medical practices and other healthcare businesses.  Mr. Cohen and Mr. Meyer can be reached at and also by calling toll free at (888) 455-7702.   
Last Updated on Tuesday, 13 September 2011 15:56
The IOM Report on Reform of the 510(k) Device Clearance Process and Beyond Print E-mail
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Wednesday, 31 August 2011 17:39

In the second step of the Food and Drug Administration's (FDA) initiative to assess and reform the 510(k) clearance process for Class II medical devices, the Institute of Medicine released its commissioned report on July 29, 2011, recommending that the FDA replace the 510(k) clearance process with a new regulatory framework.  The IOM report should be noted by stakeholders for the significance of this recommendation and the extent to which it may impact the direction and scope of upcoming FDA changes to the medical device clearance process. 
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CMS' 2012 OPPS Proposed Rule Further Revises Physician Supervision Requirements Print E-mail
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Tuesday, 16 August 2011 00:00

The U.S. Centers for Medicare & Medicaid Services (CMS) intends to further revise its physician supervision policy by proposing the federal Advisory Panel on Ambulatory Payment Classification Groups serve as the independent review body to evaluate and recommend physician supervision levels to CMS, and by defining personal supervision and general supervision for all hospital outpatient therapeutic services.

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Last Updated on Wednesday, 17 August 2011 13:21
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