Lawrence Vernaglia Comments on New HHS OIG Advisory Opinion

Foley & Lardner LLP partner Lawrence Vernaglia is quoted in the article, “Advisory Opinion Says No to Turnkey Entity, the Answer the Requester Wanted, Lawyers Say,” in the Report on Medicare Compliance, published by the Health Care Compliance Association.

Vernaglia offers his perspective on the new U.S Department of Health and Humans Services Office of Inspector General’s (OIG) advisory opinion that turns down a proposed arrangement in which a company that provides intraoperative neuromonitoring during surgeries would help its surgeon clients set up a turnkey physician-owned entity to provide the same services, citing implications of the Anti-Kickback Statute.

“OIG’s hands are tied because whoever submitted this certified they’re going to enter this business if they get a favorable opinion. The thing that gets my goat is when you ask the question the way they did, of course they’ll get the answer they got,” Vernaglia explained, adding that “there may have been more favorable facts and characterizations that could have been presented but clearly weren’t.”

“I find it frustrating when people use the advisory opinion process to solicit a response about a competitor,” Vernaglia said.