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Learn MoreIn this day and age, there are countless types of fraud we need to be wary of - identity theft, cashier’s check fraud, phishing, and more. Another very real and malicious kind of threat is healthcare fraud. According to one legal definition, healthcare fraud is defined as “a crime in which healthcare claims are dishonestly filed to profit illegally from the payments received.” It is an expensive crime that leads to a loss of nearly $60 billion per year. And it affects both individuals and businesses alike, potentially raising health insurance premiums, exposing patients to unnecessary procedures, and even increasing taxes.
In this post, we’ll discuss different healthcare fraud scenarios along with tips on how to protect your organization.
Types of Healthcare Fraud
Both patients and medical providers can commit healthcare fraud by intentionally deceiving the healthcare system to receive payments or benefits not legally granted to them. There are a few different kinds of healthcare fraud or false claims. The ones committed by medical professionals typically fall under four different categories:
The potential damage of false claims is so large, that a federal statute, The False Claims Act (FCA), was enacted back in 1863 in response to defense contractor fraud during the American Civil War.
According to the Department of Justice, “the FCA provided that any person who knowingly submitted false claims to the government was liable for double the government’s damages plus a penalty of $2,000 for each false claim. The FCA has been amended several times and now provides that violators are liable for treble damages plus a penalty that is linked to inflation.”
The FCA also allows private citizens to file suits on behalf of the government against those who have defrauded the government called Qui Tam suits. “Private citizens who successfully bring Qui Tam actions may receive a portion of the government’s recovery.” In fact, many fraud investigations and lawsuits arise from such Qui Tam actions, with the Department of Justice obtaining more than $5.6 billion in settlements and judgments in 2021 alone.
Examples of Healthcare Fraud
It’s difficult to imagine defrauding the healthcare system, yet it happens every year. Here are three recent examples of false claims and what the outcome was for each perpetrator.
Summary: Dignity Health, a for-profit health system that operates three hospitals, was found guilty of knowingly submitting false claims to Medi-Cal for “enhanced services” they purportedly provided to patients from 2/1/2015 to 6/30/2016. “These health care providers siphoned critical Medicaid funding for their own gain instead of using it to provide health care services to patients most in need,” said U.S. Attorney Martin Estrada for the Central District of California.
Summary: In its first settlement of a civil cyber-fraud case, the Department of Justice brought Comprehensive Health Services LLC (CHS) to justice. Allegations state that CHS submitted claims to the State Department for the cost of a secure electronic medical record (EMR) system to store confidential patient information, and it was found that CHS failed to consistently store patient information in the secure EMR. It was also found that CHS gained access to controlled substances not approved by the FDA, without the proper permissions, and supplied the unapproved controlled substances to patients under State Department and Air Force contracts.
Case 3: Michigan Doctor to Pay $775,000 to Resolve False Claims Act Allegations
Summary: Vinay K. Malviya M.D., a gynecologist oncologist, was found to knowingly submit false claims for payment for federal health care programs related to radical hysterectomies when only simple hysterectomies were necessary. Claims also state that the chemotherapy services ordered by the doctor were in excess of what was medically necessary, and also that evaluation and management services were not performed or completed as needed.
One thing is clear, false claims are expensive and potentially damaging to patients. As Medical Services Professionals (MSPs), one of your key responsibilities is keeping patients safe. So, how can you keep your organization protected from healthcare fraud? It all starts with Workforce Validate.
About Workforce Validate
Workforce Validate empowers organizations to prevent fraud, reduce risk, and build a culture of compliance. From initial exclusion checks to ongoing monitoring, Workforce Validate ensures each member of your staff is clear to be on the floor and in compliance with healthcare requirements and standards. Once implemented, Workforce Validate works in three simple steps:
You review any exclusion flags and take action to ensure your staff and providers are up to par.
With access to over 900 board sanction sites, more than 70 federal and state exclusion lists (including OIG sanctions and SAM exclusions), and over one million healthcare professionals validated to date, you can be sure Workforce Validate has the information you need to prevent threats from entering your workforce.
Active, ongoing monitoring of your workforce is a key component of managing the risk inherent in providing healthcare today. Learn more about how Workforce Validate can help you prevent fraud, ensure compliance for your workforce, and ensure quality care in one fell swoop.
HealthStream’s learning management system and comprehensive suite of competency management tools empower your healthcare workforce to deliver the best patient care.
View All Learning & PerformanceHealthStream offers performance learning management solutions to help develop your healthcare staff into leaders and reduce turnover.
View All ProductsHealthStream works with healthcare organizations to create engaging and high-quality training videos for your staff and management.
View All ProductsImprove care quality and save money by making informed decisions about your healthcare facility and staff with HealthStream's reporting analytics solution.
View All ProductsHealthStream's proven methods for the improvement and overall engagement of your healthcare staff foster a positive workplace and increase retention rates.
View All ProductsThe leadership development program from HealthStream helps mold your high-potential healthcare employees into proven leaders.
View All ProductsWhen you enact HealthStream's quality compliance solutions, you can do so with the confidence your healthcare organization will meet all standards of care.
View All Quality & ComplianceFulfill compliance requirements with a variety of programs and courseware designed to address critical regulatory requirements as well as educate staff to recognize and mitigate risks.
View All ProductsBy increasing your healthcare staff's focus on quality and safety with HealthStream, they can help to reduce medical errors and readmission rates.
View All ProductsLearn about what HealthStream's healthcare policy management software and how it can help aid your organization efforts.
View All ProductsHealthStream's education helps address diversity, equity, and inclusion within your organization, as well as promoting health equity in the communities you serve.
View All ProductsHealthStream offers professional training and education on how to best optimize your reimbursement process within your healthcare organization.
View All ReimbursementTeach your healthcare staff about the revenue cycle and claim management through targeted training and video tools from HealthStream.
View All ProductsLearn about our advanced resuscitation training solutions. Our solutions are designed to help improve patient outcomes.
View All ResuscitationIn all areas of resuscitation, from neonatal to elderly care, clinical deterioration is a risk that can be avoided with the help of HealthStream's training programs.
View All ProductsHealthStream's EMS Program offers a comprehensive, CAPCE accredited EMS course library that meets National Registry annual recertification.
View All ProductsNurture the skills of your nurses and medical staff to help mold them into effective leaders with development training from HealthStream.
View All ProductsExpand the decision-making skills and effectiveness of your healthcare workforce with HealthStream's clinical development programs and services.
View All Clinical DevelopmentMake sure your clinicians have the support they need to provide competent care with clinical competency training and development from HealthStream.
View All ProductsHealthStream’s learning management system and comprehensive suite of competency management tools empower your healthcare workforce to deliver the best patient care.
View All ProductsThe suite of healthcare onboarding solutions available from HealthStream aids in nurse retention and improved patient outcomes.
View All ProductsGive your healthcare staff the decision support and skills training they need with the online products available from HealthStream.
View All ProductsHealthStream leverages medical professional development in healthcare by providing staff training programs
View All ProductsLearn more about HealthStream's Provider Credentialing, privileging, & enrollment solutions.
View All CredentialingExperience standardized and centralized healthcare credentialing, privileging, and enrollment that is smarter and faster than ever before.
View All ProductsAutomated, web-based provider credentialing and enrollment software for growing medical groups.
View All ProductsNCQA-certified CVO verification services for initial and re-credentialing files in an overflow or full-service capacity for healthcare organizations.
View All ProductsSearch, review, and add providers into the Epic provider master file with our Epic app integration, Provider Validate.
View All ProductsMake sure your healthcare staff can schedule out appointments and work schedules with ease using HealthStream's line of software solutions.
View All SchedulingHealthcare scheduling software designed to optimize staffing requirements & elevate patient care
View All ProductsPrecisely align staffing and needed resources to enable efficient patient flow and high-quality, cost-effective patient care.
View All ProductsHealthStream’s free nurse schedule app, NurseGrid™, is built to help you care for your staff and engage with their specific needs.
View All Products