OIG won't penalize rural hospital for free radiology reports

The U.S. Department of Health and Human Services (HHS) Office of the Inspector General (OIG) has decided not to penalize a rural hospital for receiving free radiology reports, according to the American College of Radiology (ACR).

The hospital certified to the OIG that it sends digital images of hospital patients via teleradiology for interpretation by a contracted radiology group. The group interprets the images, writes a report, and bills third-party payors, including Medicare and Medicaid, for its professional component services.

The OIG decided that although the arrangement could involve the antikickback laws that exclude healthcare entities from participating in Medicare, it does not necessarily mean that these laws are being violated. It determined that the radiology group assumed the cost of preparing reports, which is covered under Medicare Part B professional service; if the hospital had reimbursed the group for these costs, it would have received double payment.

The OIG cautions that this advisory opinion only applies to the parties that requested it.

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