Daily Briefing

Around the nation: DOJ to offer rewards for exposing healthcare fraud


The Department of Justice (DOJ) is starting a pilot program to reward people who report healthcare fraud involving private insurance plans, in today's bite-sized hospital and health industry news from the District of Columbia, Maryland, and Massachusetts.  

  • District of Columbia: DOJ is starting a pilot program to reward whistleblowers who report healthcare fraud schemes involving private insurance plans. Under this program, whistleblowers who expose fraud involving private insurers will be able to collect a portion of proceeds if their information leads to a successful conviction. Similarly, whistleblowers who report fraud against public insurance can be awarded a portion of recovered funds through the False Claims Act. According to DOJ, whistleblowers may receive up to 30% of the first $100 million in net proceeds forfeited in a case and up to 5% of proceeds between $100 million and $500 million. The new program is intended to fill in gaps in DOJ's existing reward programs, the agency said. (Wilson, Becker's Hospital Review, 8/1)
  • Massachusetts: According to a new study published in JAMA Oncology, regular aspirin use may decrease the risk of colorectal cancer, with unhealthy individuals seeing the largest benefit. For the study, researchers analyzed data from 107,655 people who were part of the Nurses' Health Study and the Health Professionals Follow-Up Study. The study's participants were followed for at least 10 years, monitored for colorectal cancer, and given surveys on the healthiness of their lifestyles. Regular aspirin use was considered two or more regular-strength aspirin, or six or more low-dose aspirin per week. Overall, researchers found that regular aspirin users had an 18% lower risk of developing colorectal cancer than non-users. Participants who had a less healthy lifestyle, including if they smoked or had a BMI over 25, also saw more benefits. "Our results show that aspirin can proportionally lower the markedly elevated risk in those with multiple risk factors for colorectal cancer," said Daniel Sikavi, a gastroenterologist at Mass General Brigham and the study's lead author. "In contrast, those with a healthier lifestyle have a lower baseline risk of colorectal cancer, and, therefore, their benefit from aspirin was still evident, albeit less pronounced." Previously, the U.S. Preventive Services Task Force recommended aspirin to reduce the risk of colon cancer but reversed the recommendation in 2022 due to concerns of bleeding. (Christensen, CNN, 8/1)
  • Maryland: FDA last week approved Neffy, a single-use epinephrine nasal spray, making it the first needle-free alternative to the EpiPen. The spray has been approved for use in both pediatric and adult patients who weigh at least 30 kilograms, or around 66 pounds. "Anaphylaxis is life-threatening and some people, particularly children, may delay or avoid treatment due to fear of injections," said Kelly Stone, associate director of FDA's Division of Pulmonology, Allergy and Critical Care. "The availability of epinephrine nasal spray may reduce barriers to rapid treatment of anaphylaxis. As a result, Neffy provides an important treatment option and addresses an unmet need." According to ARS Pharmaceuticals, which manufactures the spray, the approval is the first significant change in epinephrine delivery in over 35 years. "This approval marks a watershed moment in addressing an unmet medical need for people with Type I allergies — a treatment alternative that avoids the need to inject epinephrine with a needle, which can be fraught with anxiety and fear for many," said Richard Lowenthal, ARS' cofounder, president, and CEO. Neffy is expected to be available to patients within eight weeks of FDA approval, ARS said. (Weixel, The Hill, 8/9; Aleccia, Associated Press, 8/11)

C-SUITE CHEAT SHEET: FRAUD AND ABUSE

Download our cheat sheet to learn about fraud and abuse regulations, how to guard against potential violations, and prepare to have conversations with health system executives about compliance programs.


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