Disguised Kickback Scheme In The Homecare Industry- Really?

In the latest HME News there is an interesting, if not curious write-up concerning the Office of Inspector General issuing a (its not clear) warning to an alleged wheelchair manufacturer that “providing dealers (my words) with advertising and reimbursement advice may not be a good idea – allegedly because of the possibility of “kickbacks”.”

Well this is interesting from a couple of perspectives. One is that manufacturers today represent to industry openly that they champion their (reimbursement) cause with the government, and that “cooperative” advertising that helps drive customers to dealers is also done openly on TV etc.

The authorities go on to state; “There is a substantial risk that the proposed arrangement would be a disguised kickback scheme having as one of it purposes the generation of business payable by a federal healthcare care program for the manufacturer.”

It’s good of the “manufacturer” to share this warning with industry…

From an ethics point of view a lot of us were brought up to believe that if you were confident enough about your position and published it on the front page of your newspaper you were probably not doing anything wrong.

Seems this may not be the case here.

(Right or wrong, for better or worse there are several major countries in the world that don’t seem to have an issue with the above practice) – do you?

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About Frank Barlin

Frank is the founder and managing partner at Sibaya. He provides recognized leadership in homecare consulting and has advised firms ranging in size from those listed on the NYSE and the LSE to early stage startups. Frank’s international experience is broad-based, having spent his professional life based in Europe, the United States and South Africa. Prior to founding Sibaya in 2002 he was European Vice President for a publicly traded healthcare company. In addition he has held various country general management positions and directorships. Recent home healthcare projects include European business development, acquisition strategy and advice, competitive benchmarking, Asian outsourcing and turnaround management. He works out of the Paris office.

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