OIG and DOJ governance Compliance Guidelines require appointment of a person with compliance expertise to the governing Board.
Federal health care regulatory guidelines published by the United States Department of Health and Human Services, Office of the Inspector General (“OIG”), and United States Department of Justice (“DOJ”) provide that appointment of a person with compliance expertise on an organization’s governing Board is material for determining whether an entity has effectively implemented its Corporate Compliance and Ethics Plan.
Also, emerging growth companies that participate in the health industry frequently need an independent director with specific industry expertise (because private eQuity funds rarely have granular regulatory knowledge).
Regulatory compliance is a financial issue because non-compliance can put a crippling disruption in immediate cash flow as well as cause a complete financial collapse if, for example, the enterprise is accused of submitting false claims for payment or to be impermissibly remunerating referral sources. For example, if federal reimbursement programs believe that there is “credible evidence of fraud,” even when there has been no due process hearing, all payments to an enterprise can be indefinitely suspended. If so, the expected return to equity investors is jeopardized, and the enterprise may be unable to make debt payments when they become due. Also, regulatory risk factors will likely prevent the enterprise from raising more debt or equity capital.
Thomas william baker will consider possible board appointments.
Tom Baker’s expertise and experience regarding not only health care statues and regulations but also corporate governance and fiduciary duty make him uniquely qualified for Board of Director appointments, which he will gladly entertain. Mr. Baker’s full CV can be accessed here.
Coronat’s White Papers on OIG/AHLA/AHIA/HCCA Practical Guidance for Health Care Governing Boards On Compliance Oversight and Using The DOJ Fraud Section Guidance on “Evaluation of Corporate Compliance Programs” To Enhance Compliance Plans are available under the Educational Books and Resources tab on the Menu.