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Penn State Sanctions Take Their Cue From The OIG

July 23, 2012 | Comments Off on Penn State Sanctions Take Their Cue From The OIG
Posted by Beth Christian

The NCAA has announced the sanctions that will be imposed against the Penn State football program.  It is interesting to note that many of the penalties imposed are strikingly similar to those imposed against health care providers who are involved in health care fraud investigations:

  1. A substantial fine ( equal to one year’s worth of football revenue) was imposed.
  2. The football program will be subject to the oversight of an outside monitor for a period of five years.
  3. The University will be required to appoint a compliance officer.
  4. The University will be required to enter into a consent agreement with the NCAA with detailed compliance provisions.
  5. No “death penalty” (exclusion from participation) was imposed. This is similar to the approach taken by the OIG when developing sanctions against larger institutional  providers and publicly traded entities.

It may be helpful to use this football analogy when instructing staff members of the importance of corporate compliance and the penalties that may be imposed when compliance is ignored.  We have seen too many instances in our practice where a health care provider implements compliance initiatives too “late in the game,” and will require our help in negotiating a settlement with the US Attorney’s office and/or the OIG.

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