Some
people talk about having a “near miss.”
Others may say they “dodged a bullet.”
Whenever my Dad escapes grave danger he says, “Well, I certainly jumped
a snake on that one!” A few months ago, some
North Carolina dentists “jumped a snake” in connection with a lawsuit alleging
violations of the federal Anti-Kickback Act and the False Claims Act.
Current
and former employees of a major dental supply company filed suit. They claimed that their employer gave
dentists illegal kickbacks for buying its supplies, including dental implants. These “incentives” included cash, all-expense
paid trips to international symposiums, and free dental equipment. It also paid them to speak at numerous
workshops in exchange for buying the supplies.
The dentists who accepted these illegal
incentives used the supplies in treating patients. They then billed dental insurance carriers as
well as Medicare and Medicaid for that treatment. A health care provider who files a false or
fraudulent claim for payment violates the False Claims Act. A claim is fraudulent if the provider
violates the Anti-Kickback laws in connection with treating the patient. The Court viewed the incentives offered by
the dental supply company as illegal kickbacks.
The
defendant told the Court that it had not filed any claims with the government
or insurance companies. It argued that
the dentists were the ones who accepted the kickbacks and filed the fraudulent
claims. Accordingly, it reasoned, the
dentists were the proper defendants.
The
Court rejected this argument. It held
that the dental supply company would be liable if it induced the dentists to
accept the illegal kickbacks. It ordered
the case against the company to go forward to trial.
The
Court noted that the complaint failed to identify the dentists who accepted these
kickbacks. It did list the states where
these dentists practiced. North Carolina
is one of the states listed. Fortunately
the Plaintiffs did not file claims against the dentists. The dentists have jumped a snake – for now. Still, it is important to take note of the
case and the types of “incentives” that the courts view as illegal
kickbacks. Very few folks can jump the
same snake twice.
