HHS Warns Group Purchasers Against Equity Offers

Law360, Washington (July 23, 2013, 3:42 PM EDT) -- The U.S. Department of Health and Human Services' inspector general warned group purchasing organizations Tuesday that they may violate anti-kickback laws if they entice members to sign longer contracts in exchange for equity shares of the GPO parent company.

Such arrangements could increase the risk of fraud, the Office of Inspector General said in an advisory opinion on a GPO's proposal to give members equity shares in its publicly traded parent company in exchange for longer membership contracts. The opinion redacted the name of the requesting...
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