Health Care Executive Liability Exposure Post-Sacred Heart

By and on April 14, 2015

Let’s get something straight, up front. The sky is not falling. No new enforcement wave is coming. Health care executives need not start contacting personal defense counsel.

But in the wake of the March 19 verdict (Jury Finds Chicago Hospital Execs Guilty In Kickbacks Case) in the Sacred Heart antikickback case, it’s reasonable for general counsel to expect a question or two about personal liability from senior leadership team members. And that’s a great teaching moment for the general counsel. Indeed, Sacred Heart involved highly unique facts, and individual executive prosecutions under the federal Anti-Kickback Statute [42 U.S.C. 1320a-7b(b)] remain extremely rare. But the federal government has a wide variety of enforcement tools from which to pursue health care executives that it regularly considers using. So Sacred Heart provides an opportunity for general counsel to brief executives on the scope of the government’s power and discretion related to individual executives.

Read the full article from Law360.

Michael W. Peregrine
Michael W. Peregrine represents corporations (and their officers and directors) in connection with governance, corporate structure, fiduciary duties, officer-director liability issues, charitable trust law and corporate alliances. Michael is recognized as one of the leading national practitioners in corporate governance law. Read Michael W. Peregrine's full bio.

Tony Maida
Tony Maida counsels health care and life sciences clients on government investigations, regulatory compliance and compliance program development. Having served as a government official, Tony has extensive experience in health care fraud and abuse and compliance issues, including the federal and state Anti-Kickback and Stark Laws and Medicare and Medicaid coverage and payment rules. He represents clients in False Claims Act (FCA) qui tam matters, government audits, civil monetary penalty and exclusion investigations, and Centers for Medicare and Medicaid Services (CMS) suspension, and revocation actions, negotiating and implementing corporate integrity agreements, and making government self-disclosures. Read Tony Maida's full bio.