RESOLVING EMPLOYMENT CONFLICT OF INTEREST ISSUES IN THE WORKPLACE

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RESOLVINGEMPLOYMENT CONFLICT OF INTEREST
ISSUES IN THE WORKPLACE
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• Conflict of interest means different
  things
• - Legal Ethics
• - Medical Ethics Regulatory Compliance
• - Corporate Compliance

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LEGAL ETHICS

• Ethical conflicts of interest for instance
  - representing both sides of the same dispute,
  being adverse to a client you formally
  represented, etc.

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MEDICAL COMPLIANCE

• Regulatory compliance and various insurance
  requirements define certain circumstances where
  ethically your physicians are not permitted to
  supply services or if they supply services they
  will not be reimbursed.

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CORPORATE COMPLIANCE

• Many organizations have conflict of
  interest policies that regulate both the legal,
  employment and best business practices standards
  the organization wants all of its employees to
  observe.

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POLICY ISSUES COVERED

• SEC, Foreign Corrupt Practices, Import/Export
  Compliance
• Federal, State and local laws and regulations
• Employment Laws
• Moonlighting, other businesses
• Expense Reporting
• Gifts from Suppliers

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• Todays discussion will focus on the
  business conflict of interest issues that several
  of your members asked us to focus on today.

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1. Directing employees to perform personal
tasks.

• Examples are
• Picking up dry cleaning
• Picking up wife or significant others jewelry
• Babysitting children
• Picking up children from school
• All of the above

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• The issues are numerous. The primary issue
  for the organization is the diversion of the
  medical practices resources for personal tasks
  that do not benefit all of the owners equally.

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• 2. Running another or side business from the
  medical office using the practices resources for
  one or more owners personal gain.

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• While the issues are numerous and would
  include all of the issues we discussed above, we
  need to add consideration of theft of corporate
  opportunity and claims by non-participating and
  non-informed members of the practice for theft
  of practice services or a cut of the action.

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• 3. How to deal with gifts and trips from
  vendors?
• Problems include the unfair distribution of
  these items within the practice and practice
  coverage issues caused by people going on the
  trips.

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• The primary issue is anti-kickback statute,
  Medicare, Medicaid reimbursement. Problem areas
  include
• - Drug Reps
• - Durable Medical Sales
• - Home Health Agencies

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4. WHAT ABOUT BACKDOOR DEALS?

• Arrangements with Hospital and Providers on
  Medical Services
• - Anti-Kickback
• - Stark Statute

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• What issues are involved with one physician
  mandating the use of physicians relatives
  for key personal issues such as key
  financial planning, legal, etc. within the
  practice.

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• Some issues with the use of a physicians
  relatives as a medical supply vendor.

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• Paying that vendor more as a way to reward
  the physician employee.
• - Disclosure
• - Resolving Performance Issues
• - Fees and Bidding out services

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• Physician/employees having personal relationship.
• - Practice Liability
• - Individual Liability
• - Performance Issues
• - Policy Issues

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• Physician mandating the use of relatives as
  employees.

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• Pressuring employees to purchase items from
  physicians family and/or children.
• - Girl Scout Cookies
• - New cars or sale or purchase of home

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SOLUTIONS

• Policy issues need to be discussed
• Written policies put in place and signed by
• all key employees
• Training and Roll-Out meetings are key
• Policies need to be enforced
• Everyone needs to stay on-board

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LATHROP GAGE CAN HELP

• Significant Experience with Medical
  
  Practice
  Groups
• We can do the heavy lifting
• We have done this training with doctors
• HROI is also available for follow-up and
  help.