Home Health & Hospice Week

Lesson learned:  Think through marketing moves carefully.

Oxygen suppliers may want to reconsider their marketing strategies in light of a new missive from a federal watchdog agency.

On Nov. 1, the HHS Office of Inspector General weighed in on the practice of offering patients free overnight oximetry testing. In the same opinion, it also answered a supplier's question about the propriety of offering patients free home oxygen until their Medicare coverage kicks in.

The verdict: Don't do it, say the feds. Such arrangements "could constitute grounds for the imposition of civil monetary penalties" under section 1128A (a)(5) of the Social Security Act, says the OIG in Advisory Opinion 06-20.

The OIG also concluded that the arrangements raise concerns under the federal antikickback statute and the OIG "could potentially impose administrative sanctions on" the supplier.

"Kudos to the companies who approached the OIG to determine if what they were doing or planning on doing was going to be acceptable under Medicare law," Cheryl West, director of government affairs for the American Association for Respiratory Care, tells Eli. Even if the plan to offer free oxygen is "an altruistic attempt to help the oxygen patient," Medicare regs and rules serve to even the playing field, she says.

Bottom Line: Whether your goal is good marketing or charity care, keep a careful eye on Medicare regulations. v

Note: To view the Advisory Opinion, go to http://oig.hhs.gov/w-new.html.