In its first Advisory Opinion of 2014, the Department of Health and Human Services Office of Inspector General (“OIG”) found that an arrangement between a placement agency (the “Placement Agency”) and certain senior residential communities (the “Communities”) does not violate the Anti-Kickback Statute (“AKS”). Under the arrangement, the Communities pay the Placement Agency for referring new residents to the Communities where the residents may receive services paid for by Federal health care programs. The main issue addressed by the OIG is whether the Communities are improperly making payments to the Placement Agency in order to create Federal health care program business. The AKS generally prohibits the payment or acceptance of remuneration (broadly defined as anything of value) to induce or reward referrals of items or services reimbursable by a Federal health care program.

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