Print Edition
May 2013 
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Fraud And Corporate Wrongdoing In The Healthcare Sector |
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Matt Atkins, September 2012 |
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Page 3 of 3 |
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Shape of the future
The enforcement landscape is clearly changing, with government agencies far more eager to root out and to punish firms that both knowingly engage in fraudulent practices or fail through negligence to adhere to standards of compliance. While most industry players are aware of the changing environment, others are still unsure about how to react. On the whole, companies are becoming more sophisticated where compliance is concerned, ironing out and avoiding issues before they become problematic. However, with budgets tight as a result of the financial crisis, many find it difficult to conduct the penetrating and focused reviews required to identify trouble areas before regulators are alerted.
While much of the attention in recent months has been on US regulators, the same trends are seen internationally and firms across the globe can expect to face heightened enforcement in the next few years.
“Healthcare companies operating in Europe and elsewhere can expect to see a wave of enforcement akin to the wave of enforcement that commenced in the US in the 1990s. This will be, in my opinion, particularly true with respect to the issue of provision of things of value to healthcare professionals. Ultimately, enforcement will be active in this arena,” Mr Loucks asserts.
Healthcare firms must, in the current regulatory climate, expect to come under scrutiny at some point, and prepare for the possibility of investigation. With the risk of fraud arising both within and without, strong internal compliance programs and methods of enforcement are recommended. Furthermore, exploring the use of new technology and data to assist in identifying potential risk areas should be a focus for the sector going forward. Although the risk of exposure to fraud is higher than ever before, healthcare firms can take action to protect themselves.
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