Fraud & Abuse:
OIG GREEN LIGHTS DME LOAN CLOSET ARRANGEMENT
Published on Fri Jan 09, 2009
Watchdog agency is concerned about aggressive DME marketing, it says. If you'd like to make life easier for your patients and referral sources, the OIG may be on your side. In a recent advisory opinion, the HHS Office of Inspector General gives a thumbs up to a durable medical equipment consignment closet arrangement in a hospital, even though the arrangement involves some free perks. Two DME suppliers asked the OIG to review an arrangement where they placed equipment in hospital consignment closets so patients could obtain the equipment there before going home.When the DME is respiratory equipment, the suppliers would also have personnel on site to train the patient as required by DME quality standards, notes Opinion No. 08-20. Under the arrangement, the hospitals would provide the loan closet space to the suppliers for free, according to the opinion. The hospitals would also provide desks and phones free of charge [...]