Drug Co.'s Readmissions Work Survives Kickback Scrutiny

Law360, New York (August 16, 2013, 6:01 PM EDT) -- An arrangement in which a drugmaker's subsidiary helps hospitals avoid readmissions might implicate anti-kickback law because of financial incentives influencing the choice of medications or health care providers, but the risk of fraud appears so low that penalties wouldn't be appropriate, according to an inspector general's opinion Friday.

According to the advisory opinion, hospitals would contract with the subsidiary for help making sure patients adhere to post-discharge plans in hopes of avoiding excessive near-term readmissions, which can trigger financial penalties from Medicare.

On its face, the...
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