Criminal Charges in Healthcare: When the Entity is Held Accountable for Individual Wrongdoing

This CLE webinar will discuss when criminal charges may be brought against corporate healthcare entities and possible defense strategies if this should occur. The panel will examine notable cases where criminal charges were brought against healthcare entities and lessons that can be learned in policy development and other risk mitigation techniques.

Liability risks are high for healthcare entities, yet criminal charges are rare. Typically, federal investigations involve civil proceedings under the False Claims Act and most criminal cases are brought against individuals. However, corporate healthcare entities may also be criminally charged where employees of the entity participate in criminal conduct that results in the entity making claims to federal healthcare programs as demonstrated by a recent federal indictment against Chesapeake Regional Medical Center (CRMC) for healthcare fraud and conspiracy to defraud the United States and interfere with government functions.

The story begins with a doctor who had privileges at the hospital and who was indicted and convicted of healthcare fraud and sentenced to 59 years in prison. The CRMC indictment imputes knowledge of the doctor's wrongdoing to the hospital, alleging that the hospital knowingly disregarded the doctor (1) performing unnecessary surgeries in order to increase the hospital's revenue; (2) misclassifying inpatient procedures as outpatient for reimbursement purposes; and (3) performing procedures without valid consent forms. Resolution will be costly.

Counsel should understand when criminal charges may be brought against corporate healthcare entities and how to mitigate the risk of this happening. Counsel should also be able to guide their healthcare clients through defense strategies.

Listen as our expert panel examines when criminal charges may be brought against corporate healthcare entities and how to defend against such charges. The panel will examine notable cases and offer best practices for mitigating risk.