Stumphauzer & Sloman partner Ryan Stumphauzer recently gave a presentation at the Health Care Compliance Association’s (HCCA) 21st Annual Compliance Institute in National Harbor, Maryland, on March 29, 2017. The presentation was titled “Compounding Pharmacy Prosecutions: Past Lessons and Future Trends.” Mr. Stumphauzer served on the panel with Assistant United States Attorney Jason Mehta and Elizabeth Shaw of RezLegal, LLC. The panel reviewed the False Claims Act, the Anti-Kickback Statute, the Civil Monetary Penalty Law and other laws that the government can utilize to impose severe monetary penalties and criminal sanctions on compounding pharmacies, pharmacists, physicians, marketers and others. The panel then reviewed the government’s past enforcement actions, and discussed the fact patterns that have attracted government scrutiny including the payment of research fees and/or medical director fees to prescribing physicians, employment opportunities and other incentives offered to prescribing physicians’ family members, percentage -based commission payments to marketers, waivers of patient co-pays, kickbacks to patients in the form of untraceable gift cards, as well as mass telemarketing schemes. That panel also summarized and discussed the facts of several recent cases where the government has prosecuted compounding pharmacists, marketers, and executives based on unlawful dispensing and promotion of compounded drugs. The panelists also offered their predictions regarding the government’s future enforcement efforts and priorities, and how they could impact compliance professionals and in-house counsel.
If you are the target of a government investigation or would like to learn more about recent government actions surrounding compounding pharmacy, please contact the attorneys at Stumphauzer & Sloman.