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DME Compliance Alert for Telehealth Doctors

by admin on April 11, 2018 No comments

By: Karina Gonzalez

Many DME suppliers purchase leads from marketing companies. The patients who respond to the marketing advertisements are generally not interested in travelling to their doctor’s office to obtain an order for braces, for example. This type of arrangement is seen often enough and so starts a potentially problematic arrangement with the DME company paying the marketing company.  The marketing company may then use some of these dollars to pay a telehealth company.  The telehealth company may then pay a telehealth physician for “telemedicine visit” with the patient. Ultimately, the telehealth/telemedicine physician issues and order for the braces or other supplies.The DME brace supplier then gets paid by Medicare Part C, or other healthcare plan for providing the supply to the patient.

The problem with this arrangement is that the sole source of the telehealth doctor’s reimbursement for the visit comes indirectly from the DME company.   Essentially, the DME supplier is paying the ordering physician through the marketing company for the visit with the patient.  This creates a prohibited kickback arrangement because the supplier is essentially paying the Teledoctor for the referral for braces. The telehealth company is acting as a virtual unregulated physician practice.  Providers engaged in this type of practice are not in compliance with either Federal or Florida law.

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