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Lawyers for Pharmacies Dispensaries Management Companies

By Spodek Law Group | October 29, 2016
(Last Updated On: July 28, 2023)

Last Updated on: 28th July 2023, 07:16 pm

Here’s a great article from Joel Farar,a Los Angeles lawyer, about lawyers for pharmacy management companies. Taking steps to stay legally compliant with medical regulations is vital if you manage a pharmacy or dispensary. Failing to do so puts your business at risk for unwittingly violating these laws. The result can lead to possible fines and other penalties.
While you are in the business of providing a service to patients, legislators are increasing the complexity of laws designed to protect those patients. Keeping up with the demands of those changes are not always easy. Nevertheless, an inability to follow these regulations to the letter can lead to charges of fraud or privacy violations.
The Role of the Health Insurance Portability and Accountability Act in the Healthcare System
Everyone in the industry is aware of the tremendous role that HIPAA plays in the healthcare system. This law actively prevents fraud while helping people maintain insurance plans if they switch jobs. Additionally, HIPAA protects confidential health information from being shared without patients’ knowledge and approval.
Violating this law can have a negative impact on your pharmacy or dispensary. Educating employees is crucial to ensuring they do not compromise sensitive information by accident. Any information related to patients must be kept in a secure location. Staying vigilant in daily business practices not only keeps sensitive files safe, but it also shields your business from legal action.
Audits of Pharmacies and Dispensaries
One thing that can occur from mishandling sensitive patient data is an audit. At any time, you could be contacted by one of the federal agencies charged with making sure all pharmacies and dispensaries are compliant.
Your information and records must be accurate at all times. Maintaining your business as a trustworthy resource for patients is necessary to your reputation in the industry. Even if you and your employees stay up-to-date on the latest laws that affect your business, missing a small detail may occur.
Exercising extreme caution is necessary even if you find yourself facing an audit or serious legal consequences. Not only does your business take a hit to its reputation, but mistakes can also be very costly.
Consequences of Legal Problems
Unfortunately, most people dismiss the consequences of having legal problems as a result of an audit or rule violation. Business reputations can be damaged beyond repair for some. When a single violation can cost $1.5 million, it can be a catastrophic hit.
In addition to paying high dollar fines, not being in compliance could cause a pharmacy or dispensary to lose its license. In some cases, even if the company survives, public opinion might be too far gone from the negative publicity.
Lawyers for Pharmacies and Dispensaries Management Companies Can Help
Getting legal assistance before you accidentally break one of the many healthcare laws will relieve you of the worries of losing your business. An experienced lawyer who is familiar with keeping pharmacies and dispensaries compliant will discuss your concerns and review your current practices.
Exposing where you might be at-risk or confirming that you are free from violations will go a long way to putting your mind at rest. Being protected from disastrous situations will keep you in business to provide the service your customers need.
Lab Services Fraud Lawyers
When you think of most labs, you probably think about an environment in a hospital or a doctor’s office that tests for viruses and other illnesses of patients. The lab will bill the patient or the insurance company for the services that are provided. The billing tactics can sometimes lead to lab fraud. It’s not a type of fraud that is heard of very often, but it does happen. It usually takes place in either large businesses where it’s easy ton increase the costs associated with services without anyone really paying attention because there are so many services provided or in smaller businesses where there are only a few workers who see the paperwork. Unfortunately, if there is a small business involved, then most of the workers know about the fraud and don’t do anything to stop it from happening.
Lab fraud can include a variety of issues. The lab could create statements that are intentionally misleading, getting more money from insurance companies or patients, which is the easiest way to commit this kind of fraud. Another is to intentionally leave off services that have been performed. Double billing is a common procedure that is done in labs across the country, especially in areas where the company knows that there isn’t a great chance of the person making the payment for the services to find out that another bill has been made. An example would be to bill for a procedure that is done with a test and then billing separately for the same test. The insurance company would pay for both because there are two separate bills that arrive, thinking that there are two different procedures that have been done when in reality it’s the same procedure.
Most labs have to complete a form that has codes on it that is then sent to the insurance company for billing. There are some labs that will break down each code in order to get more money from the insurance company. Each service provided is billed instead of consolidating the services that are provided as they should be on the form.
One of the ways to get patients to pay more money is to bill them for lab tests that aren’t necessary. This is where doctors can sometimes come into play with lab fraud. The doctor might order a test that might not be essential in providing a diagnosis for the patient or that the patient might not need until later. The doctor might insist that the test be done to get an answer or the patient might suffer health issues if it’s not done. The patient doesn’t really know that the test doesn’t need to be done, and the lab makes money. Another common scenario is billing for tests that are never done in the first place. Most insurance companies don’t know if the patient really had a specific kind of blood work done or not. If the company doesn’t know, then it can’t really argue with paying for the service unless proof of the tests that are done is sent to the company.
Labs are not allowed to accept any kind of kickback from outside companies or doctors. They cannot take money or services in exchange for lab tests that are provided if they are completed. If you are involved in lab fraud, you need to seek the help of an attorney as you could face five to 10 years in jail, large fines and the loss of any kind of certification that you might hold while working in the lab. An attorney can sometimes work with you if you are a part of a larger group and unaware of the fraud that is taking place, getting your charges reduced or dismissed.

Defending Your Pharmacy or Dispensary Business:

Why Lawyers are Essential for Pharmacy and Dispensary Management Companies

In an increasingly complex healthcare landscape, staying legally compliant with medical regulations is crucial for the survival of pharmacies and dispensaries. Failing to do so could lead to unwittingly violating these laws, resulting in hefty fines and various penalties. With ever-changing legislation designed to protect patients, it is vital to stay informed about the latest developments and seek legal assistance when necessary.

Understanding the Importance of HIPAA

Everybody in the healthcare industry is aware of the enormous role that the Health Insurance Portability and Accountability Act (HIPAA) plays in shaping the healthcare system. This legislation prevents fraud and helps people maintain their insurance plans when they change jobs. Most importantly, HIPAA safeguards confidential health information from being shared without patients’ consent and approval.

Violating HIPAA can have dire consequences for your pharmacy or dispensary. Thorough and continuous employee education is essential to ensure that they do not accidentally endanger sensitive patient information. All patient-related data must be securely stored, and rigorous adherence to daily business practices is crucial to shield your enterprise from potential legal action.

Pharmacy and Dispensary Audits: The Need for Constant Vigilance

Mismanagement of sensitive patient data can result in audits, where federal agencies overseeing pharmacy and dispensary compliance scrutinize your records and practices. Accuracy and proper documentation are indispensable. By maintaining your business’s integrity and ensuring your employees are well-versed in the latest regulations, you minimize the risk of overlooking critical details.

Despite your best efforts, however, you may have to face an audit or even more serious legal consequences if a mistake is made. These situations demand extreme caution, as both your business’s reputation and finances are at stake.

The Hefty Price of Legal Troubles

Most people tend to underestimate the repercussions of legal problems resulting from an audit or rule violation. Rebuilding a damaged business reputation is an arduous task, and the cost of even a single violation can be catastrophic, reaching up to $1.5 million.

The consequences don’t stop at financial penalties — non-compliance could lead to the loss of your pharmacy or dispensary license. Moreover, even if your business manages to survive, the negative publicity might deter customers from seeking your services.

Seek Legal Help Early To Safeguard Your Business

Enlisting legal assistance before any breaches in healthcare laws occur can save you from the daunting prospect of losing your business. An experienced lawyer well-versed in keeping pharmacies and dispensaries compliant will review your current practices and discuss any concerns you might have.

By revealing potential vulnerabilities and confirming your compliance with relevant regulations, you can gain peace of mind in knowing that your business is protected from devastating legal consequences.

Lab Services Fraud Lawyers: Confronting a Different Kind of Healthcare Fraud

While pharmacy and dispensary compliance is crucial, it’s essential to recognize another less-discussed form of healthcare fraud: lab services fraud. This type of fraud primarily occurs in the billing procedures in large institutions, where it’s easier to manipulate costs without detection, or in smaller businesses, where employees might be complicit in the fraud.

Lab fraud can manifest itself in various ways, including intentional false billing, omitting services performed, or double-billing. The last practice often involves billing for a procedure, plus a separate bill for the same test, tricking insurance companies into paying twice for the same service.

Another devious fraudulent tactic is billing patients for unnecessary tests with the complicity of doctors or completely fictitious tests. Most insurance companies are unable to verify whether certain tests were performed or not, making this type of fraud difficult to detect.

Note that labs are forbidden from accepting any form of kickback in exchange for providing lab tests. Engaging in lab fraud will result in severe penalties, including jail time, fines, and revocation of professional certifications.

Seeking the help of an attorney is crucial if you find yourself entangled in lab fraud. A competent lawyer can work to minimize the legal repercussions, especially if you were unaware of fraudulent activities taking place within your organization.

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