How compliance can pay off
Q. The OIG continues to emphasize the importance of compliance programs to keep companies current on regulations and in the Fall Semi-Annual report for 2004, the OIG boasts of convictions and recoupements made. Does compliance pay off in boosting a company's financial performance?
A. I presented this question to Gene Crisman, former president and COO of Home Care Supply. Sure, a compliance program makes the company money through company culture and marketing and through the cost of non-compliance -- areas of the business that are often overlooked.
Marketing the compliance program creates a positive atmosphere in the mind of the referral that you are above board, which will boost business.
The cultural impact creates a positive attitude within the organization that you do things right. This is still a people business. You want to get and retain good people, and they want to work for a company with morals and ethics. They are comfortable in this environment, which means more doing it right the first time, better customer focus and less turnover. This reflects in your P&L.
Finally, the cost of non-compliance definitely hits your P&L from many perspectives. With company culture the employees learn cause and effect and personal risk vs. reduced paper chasing, which is costly. There is enough paper chasing in this business without creating more. "There is the draconian side which is the pay backs, plus fines as the result of internal or external investigations. Having payments stopped hurts cash flow. If your provider number is shut off--you won't have a P&L. The benefits of an active compliance program far out weigh the costs," said Crisman.
Angela Miller, Medical Auditing Solutions, 972-459-1508, firstname.lastname@example.org.