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OIG Issues Fraud Alert Concerning Rental Of Space In Physicians Offices

March 01, 2000

By Kenneth J. Yood and Carol A. Kelley

As part of its continuing series of Special Fraud Alerts highlighting its views about potentially abusive arrangements under the federal Antikickback Statute, the Office of Inspector General has recently issued a new Fraud Alert entitled “Rental of Space in Physician Offices by Persons or Entities to which Physicians Refer.” This Fraud Alert focuses on durable medical equipment, diagnostic testing and other health care service suppliers who lease space from physicians who, in turn, refer patients to the suppliers. Although the Fraud Alert focuses on physician-as-landlord/supplier as-tenant relationships, the principles described in the Fraud Alert can easily be applied to any rental arrangement in which the parties refer Medicare or Medicaid patients to each other.