RESOLVINGEMPLOYMENT CONFLICT OF

INTEREST ISSUES IN THE WORKPLACE

“Conflict of interest” means different things: - Legal Ethics- Medical Ethics & Regulatory Compliance - Corporate Compliance

LEGAL ETHICS

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

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.

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.

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

Today’s discussion will focus on the business conflict of interest issues that several of your members asked us to focus on today.

1. Directing employees to perform personal tasks.

Examples are:A. Picking up dry cleaning;B. Picking up wife or significant other’s jewelry;C. Babysitting children;D. Picking up children from school;E. All of the above

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.

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

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.”

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.

The primary issue is anti-kickback statute, Medicare, Medicaid reimbursement. Problem areas include:

- Drug Reps- Durable Medical Sales- Home Health Agencies

4. WHAT ABOUT BACKDOOR DEALS?

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

5. 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.

6. Some issues with the use of a physician’s relatives as a medical supply vendor.

Paying that vendor more as a way to “reward” the physician employee.

- Disclosure- Resolving Performance Issues- Fees and Bidding out services

7. Physician/employees having personal relationship.

- Practice Liability- Individual Liability

- Performance Issues- Policy Issues

8. Physician mandating the use of relatives as employees.

9. Pressuring employees to purchase items from physicians family and/or children.

- Girl Scout Cookies- New cars or sale or purchase of

home

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

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.