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OIG Classifies Physician-Owned Device Companies as Inherently Suspect of Violating AKS

May 07, 2013

By JAMES F. OWENS & JOSH R. HILL

This Client Alert analyzes a recently released OIG Special Fraud Alert, which declares that physician-owned device companies that sell or arrange for the sale of medical devices ordered by their physician-owners are inherently suspect under the federal Anti-Kickback Statute. The Alert provides examples of certain features which should be avoided in arrangements with physician-owned device companies and should serve as a warning to all physician-owners and hospitals and ambulatory surgery centers who contract with physician-owned device companies that the federal government views such arrangements as inherently at risk of violating AKS.