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Legal Alert: Recent Exclusion Efforts by the OIG Raises Stakes for Health Care Executives

10/21/2011

Recent Exclusion Efforts by the OIG Raises Stakes for Health Care Executives

by Greg Brower, Paul Giancola and Anne Bishop

In October 2010 when the Office of Inspector General of the U.S. Department of Health and Human Services (OIG) announced new guidance concerning the factors it would consider when implementing its permissive exclusion authority under the Social Security Act, more than a few eyebrows were raised. What caused many to be concerned was that the new guidance appeared to allow the OIG to exclude a company officer or manager from doing business with the federal government because of the employer’s conduct, even without evidence of wrongdoing on the part of the individual. These concerns have been heightened in light of the OIG’s proposed actions to exclude two executives who had not been convicted of or even charged with a crime. Although it was recently reported that the OIG had finally decided not to pursue this course of action against one executive, Howard Solomon, it was also reported that the OIG had considered starting exclusion proceedings against eight of the company’s other executives over illegal sales of its products.

[Read the full alert.]