C. Compliance With Anti-Kickback And Corrupt Influence Statutes

Both federal and New Jersey state laws specifically prohibit any form of kickback, bribe or rebate made directly or indirectly, overtly or covertly, in cash or in kind to induce the purchase, recommendation to purchase or referral of any kind of health care goods, services or items paid for by Medicare or the Medicaid program. The term "kickback" as defined in these statutes means the giving of remuneration, which is interpreted under the law as anything of value. Under the federal law, the offense is classified as a felony and is punishable by fine and imprisonment for up to five years.

Other federal and state laws known as "anti-referral" laws prohibit UMDNJ under certain circumstances from billing for services by physicians or other health care practitioners who have a contractual or business relationship with UMDNJ or a UMDNJ employee under certain circumstances. Billing for such services may result in substantial penalties. You should become familiar with these laws and assure that all of your activities are conducted in such a manner that no questions may arise as to whether any of these laws have been violated. Any question concerning these laws or any business arrangement subject to anti-kickback or anti-referral laws should be directed to the Compliance Officer, who will enlist the services of the Office of Legal Management.

To list everything that may constitute an improper inducement under the anti-kickback laws would not be possible. But one thing is clear, UMDNJ must scrupulously avoid being either the offeror or the recipient of an improper inducement. Care must be taken in structuring relationships with persons not employed by UMDNJ so as to not create a situation where UMDNJ appears to be offering an improper inducement to those who may be in a position to refer or influence the referral of patients to UMDNJ. For example, the offering of any goods or services to physicians for the purpose of influencing them to refer patients to, or utilize the professional services offered by UMDNJ would be improper.

As a provider of patient care, UMDNJ should also not receive any improper inducement from its vendors to influence it in making decisions regarding the use of particular products or the referral or recommendation of patients to other providers of goods and services paid for by Medicare or Medicaid. Free, or at below-market value, goods or services from vendors, awards, discounts, prizes or other forms or remuneration may be treated as a "kickback" even if given as part of a promotional program of a vendor or provider, such as a pharmaceutical company or medical equipment supplier. There are certain exceptions to these rules including those that permit discounts, rebates and allowances under appropriate circumstances, provided there is proper disclosure of the discount or other remuneration to third-party payers. Given the complexity of those rules, no free goods or services, discounts, rebates, or allowances should be accepted without prior approval of the Compliance Officer.

Before entering into any business or contractual relationship with any person or organization that may raise a question under the anti-kickback laws, or with any physician or other health care practitioner who makes or may make referrals to UMDNJ, you are required to consult with the Corporate Compliance Officer and the Office of Legal Management.

Likewise, it is a violation of UMDNJ's policy, and an offense for which dismissal will be considered, for any officer, employee or any other person acting on behalf of or in the name of UMDNJ to make or authorize the paying of any bribe, any payment for an illegal act or any other use of UMDNJ resources which, although arguably not illegal, could be interpreted as improper or unwarranted.

In general, any money, property or favor offered or given to induce someone to forego normal business or professional considerations in making decisions that affect UMDNJ constitutes improper use of a resource. Equally improper is any payment of any kind to consultants, agents, brokers, attorneys, other individuals or firms if there is reason to suspect that some or all of the payment is to be used to do anything that is prohibited by this Code.

A useful test to apply in determining whether a payment or any other transaction is proper is whether such transaction, if disclosed publicly, could adversely affect UMDNJ's reputation. Another useful principle to follow is not to give anything to a vendor, client or other person doing business with UMDNJ which you could not yourself accept under UMDNJ's policies (see Gifts and Entertainment) if it were offered to you under similar circumstances. If you have any doubts as to whether a payment is lawful, you should consult your supervisor or the Compliance Officer.