Lawrence Vernaglia Discusses OIG Advisory Opinion on Provision of Gift Cards to Physician Practices

Foley & Lardner LLP partner Lawrence Vernaglia is quoted in the article, “OIG Approves Gift Cards in Advisory Opinion, But Something More Is in Play, Lawyer Says,” in the Report on Medicare Compliance, published by the Health Care Compliance Association.

Commenting on a new U.S. Health and Human Services Office of Inspector General (OIG) advisory opinion clearing the way for a consulting firm to give gift cards to its physician customers for recommending its services, Vernaglia said the opinion speaks to something larger than gift cards.

“It’s about the underlying remuneration,” Vernaglia said. OIG is drawing a distinction between payments associated with services that are not payable by federal health care programs and services that are, he continued. If not, OIG is saying the Anti-Kickback Statute (AKS) doesn’t apply.

While advisory opinions only apply to their requestors, Vernaglia commented that they are read with great interest in the industry. “It’s now in the thought process that it will be important for providers and suppliers, when doing an analysis of whether there’s an AKS issue, to ask whether a party paid the potential inducement to provide any services that are reimbursed in whole or in part by a federal health care program,” he observed.

Vernaglia added it is “an excellent opinion.”