Rural Hospital Provider Assistance Program Grant Applications Coming VERY Soon!
The Department of Health and Human Services (“HHS”) announced that later this month it will open applications for the Rural Hospital Provider Assistance Program Grant. The grant was created as a part of the 2026 Consolidated Appropriations Act to assist rural hospital providers. HHS will determine eligibility for the grant on inpatient beds, the hospital wage index, and rural status. HHS issued notification of the grant prior to its publication to allow potentially eligible hospitals ample time to prepare and submit applications.
OIG Issues a Favorable Advisory Opinion for Proposed Hearing Center Lease Arrangement
The Office of Inspector General for the Department of Health and Human Services (“OIG”) issued a new advisory opinion, Advisory Opinion No. 26-08. The requesting entity (“Requestor”) is a corporation owned by a physician seeking to create a centralized location to provide a range of items and services, including access to caregivers, audiologists, physicians, and cochlear implant manufacturers, to patients who suffer from hearing loss and may be candidates for cochlear implants (the “Center”). Requestor currently leases hearing equipment and an office building with several suites of varying sizes. In the Proposed Arrangement, Requestor would sublease on both a full-time and part-time basis, space to certain parties (e.g., cochlear implant manufacturers and audiologists) to effectuate the Center. The Requestor’s physician owner and each of the sublessees would be able to refer to one another, but there would be no referral requirement or pressure to refer between individuals in the Center. Requestor certified that it would only be receiving fair market value for the subleases and would not be exchanging remuneration of any other kind with the sublessees. The OIG indicated that the Proposed Arrangement, if undertaken, would not generate prohibited remuneration under the federal anti-kickback statute. Accordingly, it would not impose administrative sanctions.
OIG Issues a Favorable Advisory Opinion for Free Orthodontic Treatment of Patients
The Office of Inspector General for the Department of Health and Human Services (“OIG”) issued a new advisory opinion, Advisory Opinion No. 26-09. The requesting entity (“Requestor”) is a pediatric dental and orthodontic provider that operates in three cities. In the Proposed Arrangement, the Requestor would offer free, comprehensive orthodontic treatment (“Free Service”) for up to one existing patient at each location per year. Requestor’s treating dentists or orthodontists could nominate existing patients between the ages of 10 and 14 that have a clinical necessity and a financial need for orthodontics. The patient would be selected using a consistently administered weighted scoring system that would consider clinical need (40%), financial hardship (40%), and community impact (20%). The patient would also be required to have a licensed dental provider determine the patient is cavity free and demonstrates good hygiene. There would be no requirement the patient seek that evaluation or any other future service from the Requestor. Requestor would also not advertise but may publicly reference the Proposed Arrangement. The OIG indicated that, although the Proposed Arrangement would generate prohibited remuneration under the under the Beneficiary Inducements CMP and Federal anti-kickback statute, if the requisite intent were present, it would not impose administrative sanctions.