KADLEC MEDICAL CENTER

POLICIES & PROCEDURES

TITLE: Gifts and Entertainment -From Vendors to Hospital Departments or Employees / DATE: / NO. 1532 / Page 3 of 3

KADLEC MEDICAL CENTER

HOUSE-WIDE

Section: Corporate Compliance

POLICY AND PROCEDURES

TITLE: Gifts and Entertainment -From Vendors to Hospital Departments or Employees / POLICY: X
PROCEDURE:
GUIDELINE:
STANDARD: / NO. 1532
EFFECTIVE DATE: 10/13/2003 / PAGE 1 OF 1
ADMINISTRATIVE
APPROVAL: signed by Rand Wortman 10/13/2003 / SUPERSEDES: 07/02, 11/98
REVISION INITIATED:
COMMITTEE APPROVAL/REVIEW: Compliance Committee
DEVELOPMENT TEAM/AUTHOR(S): Jennie Martin, Compliance Officer
AUDIT REVIEW:, Jennie Martin, Compliance Officer /05/02, Compliance Committee/06/02

Purpose:

The federal anti-kickback law is intended to protect patients and the federal health care program from fraud and abuse by curtailing the corrupting influence of money on health care decisions. The law generally states that anyone who receives anything of value that may influence the purchase of items or services billed to Medicare/Medicaid can be subject to fines, prison term and/or exclusion from federal health care programs. Gifts that may not implicate anti-kickback regulations must also be carefully scrutinized for conflict of interest or the potential to unduly influence purchasing decisions.

For these reasons activities that are common business practices in other industries may not be allowed in the hospital setting. Kadlec maintains this policy to assist employees in review and determination of appropriate gifts from vendors.

Definition:

“Gifts” and “Entertainment” include, but is not limited to anything of value provided at no charge or at discount such as; loans, cash, gift certificates, services, prizes, transportation, use of another company’s vehicles or vacation facilities, stocks or other securities, participation in stock offerings, home improvements, tickets, and gift certificates. The potential list is endless — these are just examples.

Policy:

All offers of gifts or entertainment from a vendor or supplier will be reviewed against hospital guidelines or considered by the Compliance Officer prior to acceptance by any Kadlec employee. Under no circumstance will a gift from a vendor/supplier be accepted that is linked to the volume or value of purchases by Kadlec. Personnel in Finance, Materials Management, Laboratory, Pharmacy, Administration, as well as Department Directors/Managers, are expected to be vigilant in identifying potential anti-kickback concerns and bring them to the attention of the Compliance Officer. Under no circumstances may a Kadlec employee solicit a gift from a vendor or supplier whose products are billed to a federal healthcare program.

Kadlec utilizes many suppliers and vendors for both billable and non-billable products and services. Relationships with entities must be based entirely on sound business decisions and fair dealing. Business gifts and entertainment can build goodwill, but they can also make it harder to be objective about the company providing them and even have the potential to implicate anti-kickback statutes.

Gifts to Individual Employees

Gifts to individual employees must be of nominal value and be intended for use in the work place. Acceptable gifts would include promotional items such as pens, scratch pads, coffee mugs, or stress toys. Unacceptable gifts would include event tickets, gift certificates or travel. Vendors offering gifts of more than nominal dollar value amount should be referred to the Kadlec Foundation office.

Gifts or Services to Hospital Departments

Gifts to hospital departments may be accepted under limited circumstances. Occasional consumable gifts, such as a holiday gift basket may be accepted as long as the value is nominal and the items are shared among employees.

Gifts intended for patient use

Items intended for patient use or education on site, which are of nominal value, and given infrequently may be considered. Departments should use caution when accepting these gifts to ensure no unfair preference for a particular vendor’s products is implied. Acceptable gifts would include posters, anatomical models, and demonstration products.

Gifts intended to be passed on to patients for their use must be limited to $10 per item (maximum $50 per year). Federal law prohibits offering or transferring to a Medicare or Medicaid beneficiary anything of value that is likely to influence the patient’s selection of a particular provider or supplier. See housewide policy 1534 Prohibited Gifts and Inducements to Patients, for additional guidelines and requirements.

Meals, Entertainment, Travel, and Education

Gifts of travel, education, food and entertainment have a high potential for abuse and must be carefully scrutinized prior to acceptance.

Meals provided in conjunction with a legitimate educational or scientific presentation may be accepted as long as the value is modest and the venue is conducive to learning and discussion. This does not include sales or marketing presentations.

Meals and entertainment at a professional conference as part of a vendor-sponsored event are acceptable. Meals from vendors to departments should not be accepted. Examples of unacceptable meals or entertainment would include; lunches delivered to a department without an associated education program, lavish meals regardless of venue, or a “meeting” conducted at a sporting event.

Gifts of Entertainment have no related business value and should not be accepted. This includes tickets to performances and sporting events or use of a company vacation house or retreat.

Travel and education associated with a purchased product should be clearly defined in the contract or written agreement including the schedule, interval, length or costs. Costs should be limited to hospital standards for travel and education expenses and should not be associated in anyway to the purchased item’s value.

Travel during a product evaluation period to determine a vendor capability may be allowed if carefully scrutinized. The need for travel must be legitimate and clearly demonstrate a benefit to the hospital. Costs should be limited to hospital travel policy standard. Acceptance of gifts in this circumstance must be carefully considered to avoid conflict of interest or any appearance of a conflict of interest. This travel should be kept in perspective so that any decisions made regarding the supplier or vendor is based on factors relevant to the business decision and not the sales effort displayed during the trip.

Grants for education should be coordinated through the Education or Finance department. Individuals may not accept grants for education or travel directly from a vendor.

Business Courtesies

We recognize there will be times when a current or potential vendor or supplier, in order to further develop a business relationship, may extend an invitation to business dinner or to attend a social event with a company representative. With approval of a direct supervisor, an employee may accept such invitations, provided: (1) the cost associated with such an event is reasonable and appropriate; (2) no expense is incurred for any travel or lodging; and (3) such events are infrequent.

Attachment

Gifts from Vendors Questionnaire

Reference

42 CFR 1001.951 Federal Anti-kickback

42 CFR 1001.952 Anti-kickback Exceptions

DHHS OIG; Special Advisory Bulletin; Offering Gifts and Other Inducements to Beneficiaries

Housewide Policy 1534 Prohibited Gifts and Inducements to Patients

Housewide Policy 0514 Conflict of Interest