OIG Highlights Largest Self-Disclosure Protocol Settlement

In its latest Eye on Oversight video, the Health and Human Services Office of Inspector General highlights a $25.1 million settlement, the largest settlement to date achieved under the self-disclosure protocol. The case involved a company operating pharmacies nationally that self-disclosed it had employed individuals excluded from Medicare and filled prescriptions ordered by excluded physicians, which were paid for under federal programs. The video touts that since 1998 when the protocol was launched, the government recovered $552 million—in cases involving alleged kickbacks, self referrals and overbilling of services.

"OIG recognizes that good compliance programs find issues. It's a sign of an effective compliance program to self-disclose your issues to the government. For over two decades the OIG's self-disclosure protocol has been a quick and efficient place for providers to bring their issues and resolve them and move on."

The video notes that without the self disclosure, a company can face larger penalties, exclusion from federal programs and a Corporate Integrity Agreement with "intensive OIG oversight going forward." Self-disclosure also resolves cases more quickly—on average about 12 months.

Takeaway: The OIG uses its largest settlement in history under the self-disclosure protocol, to urge labs and other providers to self-report their own compliance issues and garner more favorable settlement terms.