paying for referrals

Joe Sansone

Description

Title:

paying for referrals

Creator:

Joe Sansone

Date:

2/19/2007

Text:

Companies have begun to offer programs wherein they provide products and
services to physicians' patients and then either: 1) allow the
physician to bill for this and take a cut, or 2) they bill directly for
the physician, the money goes directly to the physician and they take a
cut. I also see this being done with casting services as well.

As a matter of fact it was just such activity that was the basis of the
advisory opinion by the OIG discussed by Kathy Dodson recently. In
summary the OIG has concerns that the physician is not:
1. Providing products from their inventory;
2. Using their staff to fit patients;
3. Making the products;
4. Billing for their products;
5. Attempting to collect for products

In other words the physician and his staff are actually providing none
of the necessary components of provision of services, yet they still
collect profit.
 
Furthermore, while keeping a percentage of a physicians collections may
be acceptable when providing billing services alone for a physician,
when accompanied with a stock and bill or similar program, it just aint
legit. Compensation cannot be based on volume of referrals. Just my
opinion, I'm no expert.

Joe Sansone
C.E.O.
TMC Orthopedic
(713) 669-1800
www.tmcortho.com
 

-----Original Message-----
From: Orthotics and Prosthetics List [mailto:<Email Address Redacted>] On
Behalf Of Eric Eisenberg
Sent: Friday, February 16, 2007 6:51 AM
To: <Email Address Redacted>
Subject: [OANDP-L] Large O and P company paying for referrals

I was approached recently by a local competitor asking me if I had heard
of
a new program being implemented by a large OandP company throughout the
country. My competitor has heard that this large O and P company is
fabricating prostheses for doctors. The deal is the doctors do the
billing
and the OandP company gets 70% for fabrication and fitting fees,leaving
the
doctors 30% for their referral. This sounds like a kickback to me,
certainly
a prosthetic company could not get away with this nationwide? Has
anyone
else heard such rumors or is this just local paranoia.

Eric S. Eisenberg M.S.,C.P.O.

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Citation

Joe Sansone, “paying for referrals,” Digital Resource Foundation for Orthotics and Prosthetics, accessed November 2, 2024, https://library.drfop.org/items/show/227800.