Case Before Supreme Court May Expose Doctors to Large Fines

Share this content:
Case Before Supreme Court May Expose Doctors to Large Fines
Case Before Supreme Court May Expose Doctors to Large Fines

FRIDAY, March 18, 2016 (HealthDay News) -- A case before a state supreme court could potentially expose physicians to large fines based on a legal technicality relating to what they should have known, rather than what they knew, according to the American Medical Association (AMA).

The Allstate Insurance Co. v. Northfield Medical Center case, which is currently before the state supreme court, is related to whether liability under the New Jersey Insurance Fraud Prevention Act (IFPA) can be based on what the medical group or practice should have known. The IFPA is designed to protect against fraud in a similar way to the Stark Law and False Claims Act, which may impose large penalties on physicians for referring patients to health care facilities with which they have a financial relationship.

The Northfield Medical Center thought that it was in compliance with state regulations regarding the corporate practice of medicine. However, due to constant changing of regulations, they were not in compliance.

"There is no argument to support deliberate fraud," a brief from the the Litigation Center of the AMA. "But there is a [difference] between deliberate fraud and mistake. An appropriate standard and definition of 'knowing' prevents that [difference] from becoming a slippery slope that punishes health care practitioners who reasonably believe that they are in conformance with their professional ethical obligations and with state law."

More Information

Share this content:

is free, fast, and customized just for you!

Already a member?

Sign In Now »


Sign up for myCME e-newsletters


Drug Lookup

Browse drugs by: BrandGenericDisease


More in Home

U.S. Teens Not Getting Enough Moderate/Vigorous Exercise

U.S. Teens Not Getting Enough Moderate/Vigorous Exercise

And bad habits continue after high school for most

Cancer Patients Have Unrealistic Hopes Entering Clinical Trials

Cancer Patients Have Unrealistic Hopes Entering Clinical Trials

Study finding is a red flag, researcher says

Increased HIV Testing Among Men Who Have Sex With Men

Increased HIV Testing Among Men Who Have Sex ...

Data from 21 jurisdictions show higher percentages with negative HIV test 12 months before diagnosis

is free, fast, and customized just for you!

Already a member?

Sign In Now »