Eliminating Kickbacks in Recovery Act of 2018 (“EKRA”)

By: Gina L. Campanella, Esq., FACHE

IMPORTANT REGULATORY UPDATES!

            Last month, the federal government passed the Eliminating Kickbacks in Recovery Act of 2018, which, in pertinent part, significantly revises and restricts the ways in which laboratories, clinical treatment facilities and recovery homes can compensate employees and contractors.  Most significantly, employees of any such facilities, even if they previously fell into the bona fide employee exception under the federal Anti-Kickback statute, can no longer be compensated based on productivity or utilizing incentive-based compensation.  Specifically, employees and contractors can no longer be compensated on either of the following bases:

  1. The number of referrals to the facility, as accounted for by either number or patients or number of tests; and
  2. The amount billed and/or collected as payment for the patients and/or services referred from a health care benefit program.

Finally, these prohibitions apply to facilities that participate with any third-party payor program, public or private.  Violators are subject to up to 10 years in prison and up to a $200,000 fine.

If you believe that these updates require review of any of your financial arrangements that are subject to the federal Anti-Kickback Law or the Eliminating Kickbacks in Recovery Act of 2018, do not hesitate to contact the office.

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