Home Health & Hospice Week

• Home care providers may benefit from a lawsuit filed by physician groups over the Red Flags Rule regulations.

The American Medical Association,American Osteopathic Association, and Medical Society of the District of Columbia filed a lawsuit May 21 in D.C. federal court seeking to prevent the Federal Trade Commission from extending identity theft regulations to physicians. "The medical societies charge that the FTC's rule exceeds the powers delegated to it by Congress and that its application to physicians is 'arbitrary, capricious and contrary to the law,'" they say in a release.

"This unjustified federal regulation of medicine treats physician practices like banks, credit card companies and mortgage lenders," said AMA President-elect Cecil Wilson. "The extensive bureaucratic burden of complying with the red flags rule outweighs any benefit to the public."

"The final red flags rule provided no indication from the FTC that physicians fell within the definition of creditor," said AOA President Larry Wickless. "The FTC's decision to apply the rule to physicians is both misguided and inconsistent with its regulatory power."

"Physicians are already ethically and legally responsible for ensuring the confidentiality and security of patients' medical information," said MSDC President Peter Lavine. "It is unnecessary to add to the existing web of federal security regulations physicians must follow."

"While the lawsuit does not directly impact [durable medical equipment] providers, a precedent is to be set for medical professionals through its impending outcome," notes Waterloo, Iowa-based VGM on its website. The same goes for HHA and hospice providers, industry experts note.

While waiting for the lawsuit's outcome, the National Association for Independent Medical Equipment Suppliers "advises all providers to be in compliance with Red Flags Rules by the June 1, 2010" deadline, the trade group says.