Criminal Aspects of Healthcare Presentation Summary

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Chapter 5
Criminal Aspects of Health Care
© 2014 Jones and Bartlett Publishers
LEARNING OBJECTIVES

Explain what criminal law is, the classification of
crimes, and its purpose.

Describe the criminal procedure process from arrest
through trial.

Describe several of the more common crimes that occur
in the healthcare setting.
© 2014 Jones and Bartlett Publishers
Criminal law

Criminal law (also known as penal law) is the body of
statutory and common law that deals with crime and
the legal punishment of criminal offenses.

What is the purpose of criminal law?
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Purpose of Criminal Law

Maintain Public Order & Safety

Protect Individuals

Use Punishment as a Deterrent

Provide for Criminal Rehabilitation

What are the definitions of a crime, misdemeanor &
felony?
© 2014 Jones and Bartlett Publishers
Definitions

Crime – social harm defined & made punishable by law.

Misdemeanor – offense punishable by less than 1 year in
jail and/or a fine.

Felony – imprisonment in a state or federal prison for
more than a year.

What is an arraignment?
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Arraignment

Formal reading of the accusatory instrument
a generic term that describes
a variety of documents, each
of which accuses a defendant
of an offense
includes the setting of bail

What is the purpose of a conference with the defendant
and prosecutor?
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Conference

Meeting for purposes of deliberation

Plea bargaining time

Commences with the goal of an agreed-upon disposition
If no disposition can be
reached, a case may be
assigned to a trial court.

Describe the process of conducting a criminal trial.
© 2014 Jones and Bartlett Publishers
Criminal Trial – I

Jury selection

Opening statements

Presentation of witnesses & evidence
Standard of proof must be
beyond a reasonable doubt.

Summations
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Criminal Trial – II

Instructions to the jury by the judge

Jury deliberations

Verdict
must be unanimous

Opportunity for appeal

What does the False Claims Act of 1986 prohibit?
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False Claims Act of 1986

Knowingly presenting a false claim for payment.

making a false record to get a false claim paid.

conspiring to defraud the government.

making a false record to avoid an obligation to pay or
transmit property to the government.
© 2014 Jones and Bartlett Publishers
Ethics in Patient Referral
Act

Prohibits physicians who have ownership interest or
compensation arrangements with a clinical laboratory
from referring Medicare patients to that laboratory.

Requires Medicare providers to report the names &
provider numbers of all physicians or their immediate
relatives with ownership interests in a provider entity.
© 2014 Jones and Bartlett Publishers
Health Care Fraud: HIPAA

Provides criminal & civil enforcement tools & funding to
fight health care fraud.

HIPAA requires U.S. AG & Secretary of DHHS acting
through OIG to establish coordinated national Health
Care Fraud & Abuse Control Program.

Program provides coordinated national framework for
federal, state, & local law enforcement agencies;
private sector; & public to fight health care fraud.
© 2014 Jones and Bartlett Publishers
Kickbacks

Laboratory

Architectural Contract
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Health Care Fraud: Text
Cases

Defrauding Medicare and Medicaid

False Medicaid Claims

Pharmacist Submits False Drug Claims

Inflating Insurance Claims

Falsification of Records
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Falsification of Records

Falsification of medical & business records is grounds
for criminal prosecution.

Anyone who suffers damage as a result of falsification of
records may claim civil liability.

The provider could lose Medicare & Medicaid funding.
© 2014 Jones and Bartlett Publishers
Misuse and Theft of Drugs

Internet Pharmacy
Failure to review patient
prescriptions prior to
dispensing.
Fraudulent billing.
Transfer of funds to offshore
account.
© 2014 Jones and Bartlett Publishers
Physicians: Victims of Fraud
Prevention

Familiarize themselves with patient-billing &
recordkeeping practices.

Avoid having one individual in charge of billing &
collection procedures.

Arrange for an annual audit of office procedures &
records by an outside auditor.
© 2014 Jones and Bartlett Publishers
Patient Abuse

Patient abuse is the mistreatment or neglect of
individuals who are under the care of a health care
organization.

Describe the signs of resident abuse the surveyors look
for.
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Forms of Abuse

Physical

Psychological

Medical

Financial
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Abuse Cases – I

Criminal Negligence
 Reckless disregard for the
safety of others.
 Willful indifference to an injury
that could follow an act.

Neglect of Residents

Abuse & Revocation of License

Abusive Search

Physical Abuse
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CRIMINAL NEGLIGENCE

Neglect of Residents

Abuse and Revocation of License

Abusive Search

Medication Violations and Resident Abuse

Assisted Living Facilities
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Murder

Unusual Number of Deaths

Nurse Sentenced for Diabolical Acts

Fatal Injection of Pavulon

Fatal Injection of Lidocaine
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Petty Theft

Cost Millions Annually

Patient Valuables

Staff Valuables

Supplies

Medical Equipment
© 2014 Jones and Bartlett Publishers
Case: Sexual Assault
 An action was filed against a nursing
facility after the plaintiff’s mother was
sexually assaulted by a dementia
patient.
 There was testimony that the facility
was properly staffed.
 There was testimony that the resident
suffered no physical injury & she was
not aware of the assault.
 What was the Court’s decision?
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Court Decision

The court found that the facility had not breached its
duty of care.
© 2014 Jones and Bartlett Publishers
Review Questions – I
1.
2.
3.
4.
5.
6.
What are the objectives of criminal law?
Describe the difference between a
misdemeanor & a felony. Give an example of
each.
List the processes of a criminal trial.
Why has health care fraud been so costly?
Based on cases in the chapter, discuss why
physicians historically have been reluctant
to remove a patient’s life-support systems.
Discuss why you believe patients are
sometimes reluctant to complain about their
health care.
© 2014 Jones and Bartlett Publishers

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