On July 20, 2022, the HHS Office of Inspector General (OIG) issued a Special Fraud Alert cautioning physicians and other health care practitioners to use “heightened scrutiny” when entering into telemedicine arrangements that have “suspect characteristics” of a fraud scheme. The Alert’s release follows significant enforcement actions by federal regulators as patients and practitioners have become more accustomed to delivery of care via telemedicine.

Release of Special Fraud Alert Coincides With Criminal Charges in Alleged $1.2 Billion Telemedicine Fraud Scheme

As we recently reported in our Investigations Blog, on July 20, 2022, the US Department of Justice (DOJ) filed criminal charges against dozens of defendants from across the country for alleged fraud totaling more than $1.2 billion involving purported telemedicine, cardiovascular and cancer genetic testing, and durable medical equipment (DME) schemes. The charges focus primarily on laboratory owners and operators whom DOJ claims paid illegal kickbacks and bribes in exchange for patient referrals by medical professionals working with fraudulent telemedicine and digital medical technology companies.

On the same date as the DOJ announcement, the OIG published a Special Fraud Alert (the Alert) encouraging physicians and other health care practitioners to “exercise caution and use heightened scrutiny” when entering into arrangements with companies claiming to provide telehealth, telemedicine, or telemarketing services...

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