New Jersey - Volume VII, Number 2 - February, 1998

UPDATE ON MEDICAL BOARD'S WARRANTLESS SEARCH: Over the past two months we reported that the NJ Attorney General sought disciplinary action against a physician for refusing to allow an unannounced warrantless search of her offices. The Board of Medical Examiners fined the physician $1,000 for failing to cooperate with the search and ordered a reinspection of her offices. The Medical Society of New Jersey and the physician pursued judicial remedies to enjoin the Medical Board and the Attorney General from conducting the inspection. The courts have refused to deal with the issue emergently, however, and the second search has been conducted. The serious constitutional issues at stake are now before the Appellate Division.

FIRST WARRANTLESS SEARCHES--NOW JAIL!: The Health Care Claims Fraud Act became effective in January, making it a criminal offense for a physician to engage in "health care claims fraud". Under the law, a physician has engaged in health care claims fraud whenever he either knowingly or recklessly makes a false, fictitious, fraudulent or misleading statement of material fact or if he omits a material fact from any record, bill, claim or other document submitted for payment for health services. The mere signature of the physician on the claim form creates an inference of knowledge of the falsity of the claim. A physician found guilty of health care claims fraud under the new law will face five to ten years imprisonment and $100,000 in fines, and automatic and permanent forfeiture of license to practice medicine. Any administrative staff who knowingly assists in committing health care claims fraud is also guilty of a crime, subjecting that person to severe criminal penalties, as well.

To help protect physicians in dealing with the dual threat of unannounced warrantless searches that could now lead to serious criminal, civil, and administrative actions, Kern Augustine Conroy & Schoppmann has expanded its Physician Advocacy ProgramJ to include legal representation when government seeks to conduct such searches. For membership information or to expand your current coverage, call Linda Somers at 908-704-8585.

PLAINTIFFS' ATTORNEYS INTERFERE IN PHYSICIAN RELATIONSHIPS: It has come to our attention that some attorneys representing plaintiffs in personal injury matters are sending records request letters to physicians which instruct them to not discuss "anything related to the patient" with anyone, including the physician's attorney, insurance carrier or other physicians, nor provide anyone with information regarding the patient, even if subpoenaed, without the express written authorization of the patient or the patient's attorney. This is a veiled attempt to use patient confidentiality to prevent physicians from exercising their rights under the law and to tortiously interfere with their contractual relations with their carrier. If you have received such a letter, please call and let us know.

ACCESS TO INFORMATION: Information about health care claims fraud, warrantless searches, new federal and state regulations, the Physician Advocacy Program, and other information of concern to physicians can be found at the Kern Augustine Conroy & Schoppmann web site http://www.drlaw.com.