For neurosurgeons, the complaint stated that the employment contract was structured so that neurosurgeons could practice their practice, receive a guaranteed salary and keep 100% of their collections without overhead. Halifax argued that the package represented fair market value, but the government put in place an expert who stated that surgeons were routinely paid twice as much as neurosurgeons paid in the 90th percentile ($881,000) when their collections were well below the 90th percentile. The March 10 transaction agreement was implemented shortly before the start of a trial on the extent of the violation of the Halifax Hard Law and whether such an offence was intentional. As part of the transaction agreement, Halifax agreed to pay $85 million in damages to the United States. Almost a quarter of this amount is for Baklid-Kunz, currently Director of Medical Services in Halifax. Halifax also acknowledged in the transaction agreement that it was contrary to the Stark Act. Finally, Halifax agreed to sign a CIA with the U.S. Department of Health and Human Services (HHS) Office of Inspector General (OIG). In today`s environment, where control of health care providers` behaviour is strengthened by regulators, it is essential for compliance officials to implement and maintain effective compliance programs to protect their organizations. Of course, it`s much easier said than done! As a result, the role of the Compliance Officer is becoming increasingly difficult.1 Several complaints by whistleblowers under the False Claims Act have highlighted these challenges and their potential consequences.2 In particular, the Halifax-Whistleblower Complaint under the False Claims Act shows that compliance officials and other compliance officers must be respected. , the trust and attention of their organization`s leaders, and the organization – from top down – must actively promote and adopt a culture of compliance to address potential compliance issues and resolve employee compliance issues in a way that prevents them from becoming whistleblowers. Halifax Health will be under significant federal oversight over the next five years, in accordance with a government-issued Business Integrity Agreement. On March 10, 2014, Halifax Hospital Medical Center and Halifax Staffing, Inc.
(Together Halifax) entered into a Settlement Agreement and Business Integrity Agreement (CIA) to clarify allegations that Halifax violated the False Claims Act (FCA) by violating the Stark Medicare requirements. Hospitals and health systems can learn a number of important lessons from the Halifax case. Most importantly, Halifax emphasizes the need to ensure that compensation agreements with physicians employed are carefully structured to meet the requirements of the Stark Act employment exception. In practical terms, the employment contracts in question included an incentive bonus, calculated by allocating a bonus pool of 15 per cent of the hospital`s operating margin for the medical oncology program among individual oncologists, based on its percentage of the total revenue of the medical oncology group for professional services.