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Hospitals are prohibited from knowingly
making a payment directly or indirectly to a physician as an
inducement to reduce or limit items or services furnished to
Medicare or Medicaid beneficiaries under the physician’s
direct care. Hospitals that make such payments and physicians
who receive them are liable for CMPs of up to $2,000 per patient
covered by the payments. In short, any hospital incentive plan
that encourages physicians through payments to reduce or limit
clinical services directly or indirectly violates the statute.
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