OIG Opinion re Consignment Closets

OIG looks at both proposed arrangements and concluded that they would not violate the anti-kickback statute

• Patients will be given a choice of suppliers, including outside suppliers outside of the hospital.
• The consignment closets will be provided at no cost to the suppliers, as will phone systems and desks by the DMEPOS personnel, there will be no referrals flowing from the suppliers to the hospital (the remuneration and referrals flow the same way).
• The DMEPOS personnel will have no contact with patients until the patients choose the supplier as their DMEPOS supplier.

To see advisory opinion 8-20 (posted Nov 26-2008) see more click here.