OIG Revises Fraud Exclusion Criteria
The HHS Office of Inspector General (OIG) finalized 4/18 a guidance explaining how it will base its decision to exclude drug or medical device companies or their personnel from federal healthcare programs due to False Claims Act suits or investigations. The guidance says a decision to exclude is based on its assessment of future risk to the federal healthcare programs. Attorney Anne Walsh (Hyman, Phelps & McNamara) writes in her firm’s FDA Law Blog that the OIG guidance depicts a “risk spectrum,” showing the lowest-risk person as one who self-discloses conduct, which could result in OIG releasing the person from potential exclusion. A person in the middle of the spectrum could avoid exclusion in exchange for agreeing to certain integrity obligations. If OIG deems a person to be in the highest risk category, there would be no way to avoid exclusion.
Under the guidance, Walsh writes, factors the OIG considers relevant are the nature and circumstance of the conduct; conduct during the government’s investigation; significant ameliorative efforts; and history of compliance.
“While a person in the midst of a government investigation under the False Claims Act may be singularly focused on avoiding prosecution,” Walsh concludes, “it is important to keep an eye on factors during the investigation that may result in potential exclusion. The goals are aligned for the most part, but the impact of certain conduct, even actions taken during the investigation, may affect the OIG’s consideration of whether to impose exclusion in the event of a determination of liability.”