Can I become a Federally Qualified Health Center?

Federally Qualified Health Centers (“FQHC”) are community-based healthcare providers that receive money for providing primary care services to under-served populations or areas. FQHCs were enacted under Section 1861(aa) of the Social Security Act and was amended by Section 4161 of the Omnibus Budget Reconciliation Act of 1990.

FQHCs are required to adhere to certain criteria, including, but not limited to, providing comprehensive healthcare services (either on-site or by arrangement with another provider) on a sliding fee scale based on ability to pay and operating under a governing board that includes patients. These comprehensive services may include: (1) preventive health services; (2) dental services; (3) mental health and substance abuse services; (4) Transportation services necessary for adequate patient care; and (5) hospital and specialty care. FQHCs must also implement an ongoing quality assurance program.


FQHC Certification

To be certified as an FQHC, a healthcare provider must meet one of the following requirements:

  • Receive a grant under Section 330 of the Public Health Service Act (“PHS Act”) or receive funding from such a grant and meets other requirements.
  • Is not receiving a grant under Section 330 of the PHS Act but is determined by the Secretary of the Department of Health & Human Services to meet the requirements for receiving such a grant based on the recommendation of the Health Resources and Services Administration (“HRSA”).
  • Was treated by the Secretary of HHS for purposes of Medicare Part B as a comprehensive Federally-funded health center as of January 1, 1990.
  • Is operating as an outpatient health program or facility of a tribe or tribal organization under the Indian Self-Determination Act or as an urban Indian organization receiving funds under Title V of the Indian Health Care Improvement Act as of October 1991.


For certification as an FQHC, the entity must meet all of these requirements:

  • Provide comprehensive services and have an ongoing quality assurance program
  • Meet other health and safety requirements
  • Not be concurrently approved as a Rural Health Clinic.


FQHC Eligibility

Once eligible, FQHCs will qualify for funding under Section 330 of the Public Health Service Act, as well as, enhanced reimbursement form Medicare and Medicaid. FQHCs are paid based on the FQHC Prospective Payment System (“PPS”) for medically-necessary primary health services and qualified preventive health services furnished by a FQHC practitioner.


Examples of FQHC

A FQHC visit is medically-necessary face-to-face medical or mental health visit or a qualified preventive health visit between the patient and a physician, NP, PA, CNM, CP, or CSW during which time one or more qualified FQHC services are furnished.  FQHCs include:

  • Community health centers
  • Migrant health centers
  • Healthcare for the homeless health centers
  • Health centers for residents of public housing
  • Health center program “look-alikes”


Telehealth Services

FQHCs are authorized to serve as an originating site for telehealth services if the FQHC is located in a qualifying area. An originating site is the location of an eligible Medicare patient at the time the service being furnished via a telecommunications system occurs. FQHCs that serve as an originating site for telehealth services are paid an originating site facility fee.

FQHCs are not authorized to serve as a distant site for telehealth consultations. A distant site is the location of the practitioner at the time the telehealth service is furnished. The cost of a visit may not be billed or included on the cost report.


FQHC Reimbursements

FQHCs set their own charges for the services they provide and determine which services to include in the bundle of services associated with each FQHC code. Charges must be uniform for all patients.

Payment is for professional services only. Laboratory tests and the technical component of billable visits are paid separately. Procedures are included int eh payment of an otherwise qualified visit and are not separately billable. If a procedure is associated with a qualified visit, include the charges for the procedure on the claim with the visit.


It should be noted that I am not your lawyer (unless you have presently retained my services through a retainer agreement). This post is not intended as legal advice, it is purely educational and informational, and no attorney-client relationship shall result after reading it. Please consult your own attorney for legal advice. If you do not have one and would like to retain my legal services please contact me using the information listed above.

All of the information and references made to laws, regulations, and advisory opinions were accurate based on the law as it existed at this time, but laws are constantly evolving. Please contact me to be sure that the law which will govern your business is current. Thank you.

Reinstatement After A Healthcare Entity or Individual is Placed on the OIG and Florida’s Exclusion List

What is the Exclusion List?

The Office of Inspector General’s (“OIG”) list of Excluded Individuals and Entities (“LEIE”) provides information to the healthcare industry, patients and the public regarding individuals and entities currently excluded from participation on in Medicare, Medicaid and all other Federal healthcare programs.

OIG imposes exclusions under the authority of sections 1128 and 1156 of the Social Security Act. On May 8, 2013, the OIG released a Special Advisory Bulletin on the Effect of Exclusion from Participation in Federal Health Care Programs, which states that no federal healthcare program payment may be made for items or services furnished by (1) an excluded person or (2) at the medical direction or on the prescription of an excluded person.


What is the Administrative Process for LEIE?

When an individual or entity gets a “Notice of Intent to Exclude” (“NOI”), it does not necessarily mean that they will be excluded. OIG will carefully consider all material provided by the person who received the NOI before making a decision. All exclusions implemented by OIG may be appealed to an HHS Administrative Law Judge (“ALJ”), and any adverse decision may be appealed to the HHS Department Appeals Board (“DAB”). Judicial review in Federal court is only available after a final decision by the DAB.

If the OIG decided to proceed with exclusion, they will send the individual or entity a Notice of Exclusion along with information about the effect of the exclusion and appeal rights. Exclusions are effective 20 days are the Notice of Exclusion is mailed, and notice to the public is provided on OIG’s website.

When a permissive exclusion (discussed below) is being considered, the NOI allows the individual or entity to request an opportunity to present oral argument to an OIG official before a decision about whether to exclude is reached. This is in addition to the right to submit documentary evidence and written argument. The process and requirements vary depending on which section of the Social Security Act is violated.


How do I determine if I’ve been placed on the list?

The following are two options available to determine whether you are on the LEIE:

  1. The Online Searchable Database enables users to enter the name of an individual or entity and determine whether they are currently excluded. If a match is made on an individual, the database can verify with an individual’s Social Security Number that the match is unique. Employer Identification Numbers are available for verification of excluded entities.


  1. The Downloadable Database enables users to download the entire LEIE to a personal computer. Supplemental exclusion and reinstatement files are posted monthly to the OIG’s website, and these files can be merged with the previously downloaded data file to update the list.

The OIG recommends that you check the exclusion list on a monthly basis. Monthly checks should be documented so that an organization can demonstrate that they have acted in good faith to screen against excluded individuals or entities. Both databases are updated by the middle of each month. You can search here: https://exclusions.oig.hhs.gov/

Providers must also review Florida’s exclusion database while it is performing background searches.


Are there different types of exclusion?

There are two types of exclusions under the Social Security Act:

  1. Mandatory Exclusion – The OIG is required by law to exclude from participation in all federal healthcare programs individuals and entities convicted of the following criminal offenses: Medicare or Medicaid fraud, as well as any other offenses related to the delivery of items or services under Medicare, Medicaid, SCHIP, or other state healthcare programs; patient abuse or neglect; felony convictions for other healthcare related fraud, theft, or other financial misconduct; and felony convictions relating to the unlawful manufacture, distribution, prescription, or dispensing of controlled substances.


  1. Permissive Exclusion – The OIG has discretion to exclude individuals and entities on a number of grounds including, but not limited to, misdemeanor convictions related to healthcare fraud other than Medicare or a state health program; fraud in a program (other than a healthcare program) funded by any federal, state, or local government agency; misdemeanor convictions relating to the unlawful manufacture, distribution, prescription, or dispensing of controlled substances, suspension, revocation, or surrender of a license to provide healthcare for reasons bearing on professional competence, professional performance, or other financial integrity; provision of unnecessary or substandard services; submission of false or fraudulent claims to a federal healthcare program; engaging in unlawful kickback arrangements; defaulting on a health education loan or scholarship obligation; and controlling a sanctioned entity as an owner, officer, or managing employee.

For all proposed mandatory exclusions lasting longer than the mandatory minimum five-year period, and most proposed permissive exclusions the administrative process is the same. OIG will send out a written NOI to any individual that they are considering excluding. The NOI included the basis for the proposed exclusion and a statement about the potential effect of an exclusion.

If you’ve already hired someone or contracted with a vendor prior to discovering that they are on the LEIE you may be required to Self-Disclose the hiring.


Reinstatement from the LEIE

Reinstatement of an excluded individual or entity is not automatic once the specified period of exclusion ends. In order to participate in Medicare, Medicaid, and all Federal healthcare programs once the term of exclusion ends, the individual or entity must apply for reinstatement and receive written notice from OIG that reinstatement has been granted.

An individual or entity with a defined period of exclusion (e.g., 5 years) may begin the process of reinstatement 90 days before the end of the period specified in the exclusion notice letter.

An individual or entity excluded under section 1128(b)(4) of the Social Security Act, whose period of exclusion is indefinite, may apply for reinstatement when they have regained the license referenced in the exclusion notice. In addition, under some conditions an individual or entity excluded under section 1128(b)(4) or the Act may apply for reinstatement if they have (1) obtained a different healthcare license in the same state; (2) any healthcare license in a different state; or (3) have been excluded for a minimum period of 3 years.

To apply for reinstatement, an excluded individual or entity must send a written request to the OIG. If the individual is eligible to apply for reinstatement, the OIG will then mail Statement and Authorization forms that must be completed. Once the information have been evaluated, a written notification of OIG’s final decision on reinstatement will be provided via mail. If reinstatement is denied, the excluded individual or entity is eligible to reapply after one year.

Individuals and entities who have been reinstated are removed from the LEIE.

Penalties for Excluded Individuals or Entities

OIG may impose civil monetary penalties of up to $10,000 for each item or service furnished by the excluded person for which federal program payment is sought. They may also be forced to pay treble damages and program exclusion.

An excluded person may be civilly liable under the False Claims Act for knowingly presenting or causing to be presented a false or fraudulent claim for payment. Violations could also lead to criminal prosecutions if an excluded person knowingly conceals or fails to disclose any action affecting the ability to receive any benefit or payment with the intent to fraudulently receive such benefit or payment. Additional criminal statutes may also apply to such violations.

The information above only scratches the surface of dealing with LEIE issues. Depending on the facts of your case the circumstances, procedures, and potential outcome can vary greatly. If you have received an NOI, discovered that one of your contractors or employees is on the LEIE, or you have been excluded from receiving Federal program dollars and desire to be reinstated you should contact us immediately. We have experienced Health Law attorneys on staff who can help you navigate the entire process.


It should be noted that I am not your lawyer (unless you have presently retained my services through a retainer agreement). This post is not intended as legal advice, it is purely educational and informational, and no attorney-client relationship shall result after reading it. Please consult your own attorney for legal advice. If you do not have one and would like to retain my legal services please contact me using the information listed above.

All of the information and references made to laws, regulations, and advisory opinions were accurate based on the law as it existed at this time, but laws are constantly evolving. Please contact me to be sure that the law which will govern your business is current. Thank you.


The Truth About the Corporate Practice of Medicine, Optometry, and Dentistry in Florida

Many states place restrictions on how medical doctors, optometrists, and dentists may organize themselves and conduct business within the state. Some states place significant restrictions on these healthcare providers while others are more lenient. Several states have enacted laws that prohibit certain healthcare providers from being employed by or controlled by any corporation or business, which is not entirely owned by other physicians. This is referred to as the prohibition of the “corporate practice of medicine.” Florida is unique in many ways, including its approach to regulating how these healthcare providers can organize themselves. Florida does not place the same corporate prohibitions on medical doctors as it does with dentists and optometrists.

Under Florida law, licensed healthcare professionals may organize themselves as professional service corporations (“P.A.”) or as professional limited liability companies (“PLC”). However, if a provider organizes her business as a P.A. or PLC she is only allowed to have other members who are in the same profession in her association. They may act as shareholders, officers, or directors of the corporation. For example, a P.A. may only be comprised of M.D.’s and is prohibited from allowing other healthcare providers such as, D.O.’s, dentists or optometrists from becoming shareholders of that P.A.

In Florida, Healthcare providers may also choose to organize themselves as a regular business corporation, with the “Inc.” designation, or as a Florida limited liability company.

Florida professional corporations are governed by the laws contained in Florida Statutes §§ 607, 620 and 621. Additionally, certain healthcare providers are regulated by one or more of the following statutes, Florida Statutes §§ 456 – 468, depending on the type of healthcare services that they provide and the licenses that they hold. Healthcare providers must ensure that they strictly comply with all applicable Florida Statutes and the Florida Administrative Code. Therefore, it is extremely important to hire a knowledgeable attorney that specializes in health law to ensure that your practice is complying with the applicable laws.


Corporate Practice of Medicine

As of April 2018, Florida does not have any laws that expressly prohibits the corporate practice of medicine. In other words, a physician (M.D. or D.O) may be employed by or contracted by non-physician owned corporations for the provision of healthcare services.

Throughout the years, several Declaratory Statements have been issued the Florida Department of Health indicating that there is no prohibition on the practice of medicine by physicians as corporate employees. In re Crow, Crow was a Florida licensed physician who sold his practice to a corporation and was then hired as an employee by that corporation and was provided a flat-fee salary for the provision of his services. Dr. Crow informed each patient of his relationship with the corporation but maintained exclusive control over the medical diagnosis and treatment of patients, and the corporation had no authority to exercise control over Dr. Crow’s professional judgment or the manner in which he rendered medical care to patients. The Board found that this arrangement was permissible so long as the fees generated for the corporation by professional services were actually provided by Dr. Crow and those under his direct supervision.


Corporate Practice of Optometry

Unlike the corporate practice of medicine, Florida expressly prohibits the corporate practice of optometry. Florida Statute §463.014 states that no corporation, lay person, organization or individual other than a licensed practitioner can engage in the practice of optometry by engaging the services, through paying a salary, commission, or other means of inducement to any Florida licensed optometrist.

The law does allow for a licensed practitioner, such as an optometrist, to associate with a multidisciplinary group of licensed healthcare professionals, the primary purpose of which is the diagnosis and treatment of the human body. Optometrists may also employ, or form partnerships or professional associations with Florida licensed practitioners or healthcare professionals, the primary purpose of which is the diagnosis and treatment of the human body.


Corporate Practice of Dentistry

The corporate practice of dentistry is prohibited under Florida law. Florida Statute §466.0285 states that no person other than a Florida licensed dentist or any entity other than a professional corporation or limited liability company composed of dentists may:

  1. Employ a dentist or dental hygienist in the operation of a dental office.


  1. Control the use of any dental equipment or material while such equipment or material is being used for the provision of dental services, whether those services are provided by a dentist, a dental hygienist, or dental assistant.


  1. Direct, control, or interfere with a dentist’s clinical judgment.


  1. Have a relationship with a dentist which would allow the non-dentist or entity to exercise control over:


  • The selection of a course of treatment for a patient, the procedures or materials to be used as part of such course of treatment, and the manner in which such course of treatment is carried out by the dentist;
  • The patient records of a dentist;
  • Policies and decisions relating to pricing, credit, refunds, warranties, and advertising; and
  • Decisions relating to office personnel and hours of practice.


Any lease agreement, rental agreement, or other arrangement between a non-dentist and a dentist whereby the non-dentist provides the dentist with dental equipment or dental materials must provide that the dentist maintains complete care, custody, and control of the equipment or practice.



Dentists must examine the administrative rules implemented by the Florida Board of Dentistry because these rules provide guidance in addition to the statutory law. The Florida Board of Optometry also has its own set of rules that could impact an optometrist’s relationship with others and how it conducts its business.

Whether you are considering creating a corporation for your healthcare practice to take advantage of tax benefits or to limit your exposure to certain types of liability you must determine whether the proposed structure for your corporation is compliant with applicable healthcare laws. For example, Florida law prohibits “fee-splitting” by healthcare professionals. Failure to do so could result in fines, penalties, closure of your office, or imprisonment.



Jamaal R. Jones, Esq. Presents a Webinar to the Florida Department of Health

On April 19, 2018, Jamaal R. Jones, Esq. made a presentation to the Florida Department of Health Attorneys for Continuing Legal Education credit. The name of the CLE Presentation was “mHealth and Wearable Technology Issues in Remote Medicine”. This presentation was listened to by 80+ attorneys who work directly for the Florida Department of Health.

Contact us to find out more information about this presentation.

Do I need a Business Associate Agreement?

Your healthcare entity may need to enter into a signed Business Associate Agreement with certain vendors and contractors that you have contracted with depending on the type of services that will be provided to your healthcare entity. Failure to produce a signed Business Associate Agreement could lead to fines and/or penalties by the Office for Civil Rights (“OCR”) in connection with potential HIPAA violations.


What is a Business Associate?

A business associate is one that creates, receives, maintains or transmits protected health information (“PHI”). Companies that only store encrypted PHI are also considered Business Associates. Subcontractors may also have to sign a Business Associate Agreement if they create, receive, maintain, or transmit PHI on behalf of a business associate.

A healthcare provider is not considered a business associate if disclosure of PHI is required for treatment. A covered entity participating in an Organized Health Care Arrangement (“OHCA”) that performs a function or activity for or on behalf of the OHCA is not a business associate if it is acting on behalf of the OHCA as a whole.


Business Associates Restrictions and Requirements

Business associates may use or disclose PHI only as permitted or required by the Business Associate Agreement or as required by law. Business associates will be directly liable under the HIPAA Rules and subject to civil and criminal penalties for failing to comply with the Business Associate Agreement or the HIPAA Security Rule.

If a Business Associate becomes aware of a security incident they must report it. A “security incident” includes “attempted or successful unauthorized access, use, disclosure, modification, or destruction of information or interference with system operations in an information system.”

Business Associates are governed by rules that provide specific guidance regarding the sale of patient information. For example, information can be sold for public health, treatment and payment, or for the sale of an entity. Additionally, information can be sold for research, but compensation must be reasonable and cost-based. Any information or data that is sold must be de-identified to remove any and all identifiers of the individual, relatives, employers, or household members.


Business Associate Agreement Requirements

The following is a list of items that must be addressed in a Business Associate Agreement:

  1. Establish the permitted and required uses and disclosures of PHI by the business associate.
  2. Provide that the business associate will not sue or further disclose the information other than as permitted or required by the contract or as required by law.
  3. Require the business associate to implement appropriate safeguards to prevent unauthorized use or disclosure of the PHI, including compliance with the Security Rule for ePHI.
  4. Require reporting to the covered entity of any improper use or disclosures including breaches.
  5. Require the business associate to make PHI available for access and amendment and require information for accounting.
  6. Require Privacy Rule compliance to the extent applicable.
  7. Require business associates to make books and records available to HHS.
  8. Require the business associate to return or destroy PHI at termination if feasible.
  9. Require the business associate to ensure that subcontractors agree to the same restrictions and conditions.
  10. Authorize termination of the contract by the covered entity if the business associate violates a material term.


Business Associate Agreement Regulatory Compliance

Periodically, Business Associate Agreements should be reviewed and updated as necessary to ensure that they are compliant with HIPAA and the HITECH Act or any other related laws.

OCR is responsible for auditing and only provide healthcare entities a narrow window to produce a list of its business associates. Therefore, it is critically important to maintain a list of business associates.


Things to consider

This is not an exhaustive list of a few things to consider when negotiating a BAA:

  1. Is this entity a Business Associate? If so, what will this BA be doing and does HIPAA allow for it?
  2. Do you want a stand alone BAA or will it be incorporated into other contracts?
  3. Has there been a discussion about indemnification and how much is required?
  4. Is a confidentiality agreement required for other information?
  5. Should we have a privacy official to design, implement and oversee privacy policy and procedure practices, including risk analysis and risk mitigation?


There are several other items to consider when drafting, negotiating and executing a Business Associate Agreement. If you have questions about Business Associate Agreements and how they work or whether yours incorporates the most recent legal requirements you should contact us today.


This post was authored by Jamaal R. Jones, Esquire  Jones Health Law, P.A. for more information contact me at (305) 877-5054; email me at JRJ@JonesHealthLaw.com, or visit our website at www.JonesHealthLaw.com.


It should be noted that I am not your lawyer (unless you have presently retained my services through a retainer agreement). This post is not intended as legal advice, it is purely educational and informational, and no attorney-client relationship shall result after reading it. Please consult your own attorney for legal advice. If you do not have one and would like to retain my legal services please contact me using the information listed above.


All of the information and references made to laws, regulations, and advisory opinions were accurate based on the law as it existed at this time, but laws are constantly evolving. Please contact me to be sure that the law which will govern your business is current. Thank you.

Healthcare Provider Marketing and Management Arrangements

Healthcare providers interested in entering into marketing or management arrangements with companies must structure these arrangements in such a way that they don’t violate any federal or Florida healthcare laws. Providers should avoid entering into any marketing and management arrangements, which gives the impression that they offered, paid, or solicited cash, or any other type of remuneration in exchange for referring patients to that provider. Failure to do so may result in an Anti-Kickback violation if the arrangement does not fit squarely within an Ant-Kickback Statute Safe Harbor.

Safe harbors that might be available to a healthcare provider, depending on the terms of the marketing or management arrangement, include, but, are not limited to the (1) referral; (2) personal services and management contract; and (3) referral arrangements for specialty services.

Providers may want to consider establishing relationships with lead generation companies for advertising purposes, rather than referral arrangements with marketing companies because they typically face less scrutiny than the latter.

Any payments made to the marketing and management companies must be for fair market value for the services that will be provided. Payments to the management and marketing companies must not fluctuate based upon the expectation or referrals or business that will be paid in whole or in party by a federal healthcare program.Percentage-based arrangements are looked at unfavorably by regulators and face significant scrutiny. Therefore, it is always safer to agree to fixed-fee or flat-fee (non-variable) compensation for management and marketing services.

Many providers believe that if they are not paying the management company directly that they are safe from potential liability. That is simply not true. Especially if the marketing or management company is also the owner of a healthcare clinic that benefits from the arrangement. These types of relationships look highly suspect. Providers must not enter into any contract with a practice management company if that management company receives any financial incentives form the referring provider for increasing outside referrals for designated healthcare services.

This informational article provides a brief overview of factors to consider prior to entering into these types of arrangements. However, there are many additional factors to consider. At Jones Health Law we careful scrutinize all potential marketing and/or marketing arrangements that our clients are contemplating. We counsel our clients on structuring the arrangement in such a way that it fits within an Ant-Kickback Statute Safe Harbor or an exception to the Stark Law (i.e. “Fair market value compensation” or “indirect compensation arrangement”). Further, we analyze whether the proposed arrangement could potentially violate any additional Health Law, business law, or agency rules. Additionally, we will help you draft a marketing and management agreements that best suits your needs.

Medicare Audit by Zone Program Integrity Contractor

If you’re reading this article it’s probably because you or your medical office has received a letter from a Zone Program Integrity Contractor (“ZPIC”) for The Centers for Medicare & Medicaid Services (“CMS”) alleging that you may have improperly billed Medicare for the provision Medicare Services to your patients.


What is a ZPIC?

There are seven ZPIC zones. It is possible for providers to hear from more than one ZPIC since the seven ZPICs focus on different aspects of the Medicare program. ZPIC Zone 7 includes Florida, Puerto Rico, and the U.S. Virgin Islands in its geographic scope. The Zone 7 – Zone Program Integrity Contractor was established to identify, research, and investigate cases of Medicare Program fraud relating to Parts A and B, DMEPOS, home health and hospice, and claims for dually eligible Medicare and Medicaid recipients.  Fraud may include:

  • Billing for services not rendered
  • Double-billing or over-billing
  • Soliciting, offering, or receiving a kickback or rebate for patient referrals
  • Billing non-covered or non-chargeable services as covered.


ZPICs responsibilities include reviewing the accuracy and justification of all services reimbursed by the program, and if necessary, take action to ensure any inappropriate Medicare payments are recovered.

Periodically ZPICs are required to conduct reviews of providers to ensure that Medicare claims have been appropriately billed. Occasionally, a ZPIC may determine based on an analysis of your claims data that you may be billing inappropriately for services. Once that determination is made, the ZPIC will begin its investigation to determine whether you have in fact billed inappropriately.


How does the ZPIC investigate?

ZPICs may conduct announced or unannounced on-site inspections at which time they will retrieve certain Medicare beneficiary records and other related business records. ZPICs will provide a list of affected Medicare beneficiaries and you will be required to produce documentation that supports the billed services, including, but not limited to:

  • All Medical Findings
  • Progress Notes
  • Doctor’s Orders
  • Office Notes
  • Operative Reports and Notes
  • Patient History and Physical Exam
  • Laboratory Test Results
  • Radiology Reports
  • Billing Statements
  • Superbills
  • Patient Information Sheet
  • Patient Encounter Forms
  • Patient Consent Forms
  • Advance Beneficiary Notice
  • Copy of Beneficiary Card and Photo Identification


During or after the on-site visit ZPICs may: (1) interview certain members of your staff; (2) perform a medical review; (3) Determine the need for administrative actions, such as payment suspensions and prepayment or auto-denial edits; (4) interview beneficiaries and/or (5) refer your case to law enforcement.

Law enforcement includes the OIG, FBI, or the U.S. Attorney’s Office. Prior to alerting law enforcement, ZPICs are required to take all other appropriate administrative actions. In some cases, law enforcement agency may not prosecution due to lack of evidence, insufficient, etc.

ZPICs will also look to determine whether the provider received prior audits or provided educational letters in the past by other CMS contractors.

Once the ZPIC has collected and analyzed enough data that has been obtained from the provider, they will determine whether the information indicates billing error or something more sinister such as Medicare fraud, waste or abuse. If ZPICs determine that no fraud has occurred then they will normally treat the matter as an overpayment and close the case. The ZPIC will then refer the matter to the Medicare Administrative Contractors (“MAC”) for further administrative action. Examples of administrative action include the following:

  • Educational letters
  • Revocation of a provider’s assignment privileges
  • Mandatory Prepayment Review or Post-payment Review
  • Suspension of Provider Payments
  • Referral to State licensing boards and other professional societies.


There is a significant chance that one or more of your claims will be audited in the future by a ZPIC. ZPICs have been aggressively reviewing and investigating provider and supplier medical records to identify improper billing and payments. Most providers and suppliers are identified for audit and/or investigation through an analysis of their billing practices. Our firm recommends that you consult with an experienced Healthcare Attorney if you are being audited by CMS’s Zone Program Integrity Contractors or if you have been placed on any type of corrective action. Contact us so that we can create a defense against the allegations while ensuring that you comply with the audit investigation.

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