Factual Background:
ABC Medical Supply Company is a durable medical equipment (DME) supplier that provides various
healthcare products to patients, including those covered by federal healthcare programs like Medicare
and Medicaid.
Here are the key players:
-ABC Medical Supply Company: A DME supplier
– Dr. Sarah Johnson: A local physician who regularly refers patients to DME suppliers for medical
equipment. Of note, nearly all of Dr. Johnson’s patients are retirees who rely on Medicare for
their health insurance.
– Mark Harbaugh: Sales Representative for ABC Medical Supply Company, responsible for
establishing and maintaining relationships with healthcare providers.
Concerning Activities:
– Mark Harbaugh, on behalf of ABC Medical Supply Company, routinely meets with Dr. Johnson to
discuss new and upcoming innovations in the DME space. Mark regularly takes Dr. Johnson out
to lunch (and her entire staff).
– Dr. Johnson finds benefits with ABC’s DME goods and regularly recommends that her patients
use purchase DME goods from ABC. In some cases, Dr. Johnson recommends that patients who
may not yet need any of ABC’s products should visit the store to make purchases for when those
patients need DME.
-In recognition of their solid relationship, ABC regularly invites Dr. Johnson to company-wide
retreats at the Hotel Del Coronado to speak on behalf of ABC’s products. As a part of this trip,
Dr. Johnson’s family is invited, all costs are covered by ABC, and Dr. Johnson receives a small
consulting fee.
Identify at least two different potential legal issues raised by this scenario. In particular, you must:
-Explain what the issue is
-Explain what the legal rule is
– Explain why the issue is likely illegal under federal law.
APA formatted
Different laws:
-False claims Acts
-Stark Law
-Anti-Kickback law