Evaluation of Corporate Compliance Programs: Incentives and Disciplinary Measures

Dear friends,

The following article is about new guidance from the Department of Justice
regarding the evaluation of compliance plans, specifically with regard to
Incentives and Disciplinary Measures; and Continuous Improvement, Periodic
Testing and Review. Feel free to share this information. If you decide to
use this material, please include our copyright designation that is shown at
the end of the article and send us a copy of any publication in which the
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for additional information.


Elizabeth E. Hogue, Esq.

Office: (877) 871-4062

Fax: (877) 871-9739

Twitter: @HogueHomecare


Part 7 - Evaluation of Corporate Compliance Programs: Incentives and
Disciplinary Measures; and Continuous Improvement, Periodic Testing and

Fraud enforcers recently declared that their expectation is that every
provider has a Compliance Program. Consequently, enforcers will now focus
on implementation of quality Compliance Programs. As part of this new
focus, the U. S. Department of Justice (DOJ) issued additional guidance on
February 8, 2017, entitled "Evaluation of Corporate Compliance Programs."
This new guidance provides a "road map" for providers to use to evaluate
their Compliance Programs, including the factors that regulators are likely
to take into account.

Specifically, the U.S. DOJ provided sample topics and questions it is likely
to use to evaluate providers' Compliance Programs. These factors include
Incentives and Disciplinary Measures; and Continuous Improvement, Periodic
Testing and Review.

Incentives and Disciplinary Measures

- Accountability - What disciplinary actions did providers take in
response to the misconduct and when did the actions occur? Were managers
held accountable for misconduct that occurred under their supervision? Did
providers' responses consider disciplinary actions for failures of
oversight? What are providers' records on employee discipline related to
the types of conduct at issue, in terms of number and type of disciplinary
actions taken? Have providers ever terminated or otherwise disciplined
employees for the type of misconduct at issue, including reducing or
eliminating bonuses, issuing warning letters, etc.?

- Human Resources Process - Who participated in making disciplinary
decisions related to the misconduct at issue?

- Consistent Application - Have disciplinary actions and incentives
been fairly and consistently applied across the organization?

- Incentive System - How have providers incentivized compliance and
ethical behavior? Have providers considered the potential negative
compliance implications of its incentives and rewards? Have there been
specific examples of actions taken as a result of compliance and ethics
considerations, such as denial of promotions or awards?

Continuous Improvement, Periodic Testing and Review

- Internal Audit - What types of audits would have identified issues
related to misconduct? Did those audits occur and what were the findings?
What types of relevant audit findings and remediation progress have been
reported to management and the Board of Directors on a regular basis? How
have management and the Board followed up? How often have internal auditors
conducted assessments in high-risk areas?

- Control Testing - Have providers reviewed and audited their
compliance programs in the areas related to any misconduct, including
testing or relevant controls, collection and analysis of compliance data,
and interviews of employees and third parties? How are the results reported
and action items tracked? What control testing have providers generally

- Evolving Updates - How often have providers updated their risk
assessments and reviewed their compliance policies, procedures and
practices? What steps have providers taken to determine whether policies,
procedures and practices make sense?

The world of fraud and abuse compliance has changed dramatically from an
emphasis on having compliance programs to an evaluation of whether
compliance programs are current and fully implemented. Don't miss the boat
on this one!

C2017 Elizabeth E. Hogue, Esq. All rights reserved.

No portion of this material may be reproduced in any form without the
advance written permission of the author.
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