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Professional Role · Topic 5 of 26

Payment Models, Fraud & Compliance

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Professional role · payment & compliance

Payment Models, Fraud & Compliance

MIPS scores four categories against a 75-point threshold. False claims, kickbacks and self-referral are separate laws with different intent standards.

01 · MIPS threshold, 202675 points avoids a penalty; penalties reach -9%
02 · False Claims ActNo specific intent to defraud required
03 · Stark lawPhysician self-referral: strict liability
01

MIPS, 2026 performance period

The 2026 score sets the 2028 payment

Quality: 30% of the score
Cost: 30% of the score
Promoting Interoperability: 25% of the score
Improvement Activities: 15% of the score
2026 final score of 75 points avoids a negative adjustment (75.00 is neutral)
2026 score 18.76 to 74.99: partial penalty on a linear scale
2026 score 0 to 18.75 (one-fourth of the threshold): maximum -9% full penalty
The 75-point threshold is set through the 2028 performance period
NPs are MIPS-eligible clinicians
2026: NP must participate when exceeding all three low-volume elements
Over $90,000 in Part B allowed charges
Over 200 beneficiaries
Over 200 covered services

MIPS Value Pathways gained 6 new options for 2026. CMS's proposed CY 2027 rule, proposed July 2026 and not final as of this review (no final CY 2027 physician fee schedule rule found in the Federal Register on 2026-11-02; check it), would sunset traditional MIPS reporting beginning with the 2029 performance period.

02

MACRA and Advanced APMs

MACRA created two tracks: MIPS and Advanced APMs

MACRA (2015) repealed the Sustainable Growth Rate formula
MACRA created the Quality Payment Program
Advanced APM requires certified EHR technology
Advanced APM requires payment based on quality measures comparable to MIPS
Advanced APM requires more than nominal financial risk or a Medical Home Model
Since 2026: 0.75% annual conversion factor update for qualifying APM participants
Since 2026: 0.25% annual conversion factor update for others
Lump-sum APM incentive: 1.88% for payment year 2026
Lump-sum APM incentive: none for 2027, 3.1% for 2028

Congress has changed the incentive percentages repeatedly; these are the amounts in the statute as of 2026-11-02. The CY 2026 Medicare conversion factors are $33.57 for qualifying APM participants and $33.40 for all other clinicians; the factors reset every year.

03

LAN framework: four payment categories

Category 1: fee-for-service with no quality link
Category 2: fee-for-service linked to quality
Category 3: APMs on fee-for-service architecture, such as shared savings
Category 4: population-based payment, such as capitation
04

ACOs and bundled episodes

Shared Savings ACOs: doctors, hospitals and other providers
ACO purpose: coordinating care for Medicare patients
TEAM: mandatory CMS model holding selected hospitals accountable
TEAM covers five surgical episodes through 30 days post-hospitalization
05

False Claims Act

"Knowing" includes deliberate ignorance and reckless disregard

Civil law: bars claims you know or should know are false
No specific intent to defraud is required
Liability: up to three times the government's loss plus a per-claim penalty
Per-claim penalty, unchanged for 2026: $14,308 to $28,619
Each item or service billed counts as a claim
A whistleblower (qui tam relator) may sue for the government
Relator share: 15% to 25% if the government proceeds
Relator share: 25% to 30% if it does not

DOJ normally adjusts the penalty range for inflation each year, so check 28 CFR 85.5; the OIG Roadmap still prints the older $11,000 figure. A claim resulting from a kickback or a Stark violation may itself be false, creating False Claims Act liability on top of the underlying law. There is also a criminal False Claims Act.

06

Anti-Kickback Statute

A criminal law: knowing and willful

No paying or receiving anything of value for referrals no kickbacks
Covers inducing or rewarding federal health care program referrals
Both payer and recipient are liable
Anything of value: free rent, excessive medical director fees
No patient harm is needed, even for necessary services
Felony: up to $100,000 and 10 years
An arrangement is protected only if it fits squarely in a safe harbor
Safe harbor example: bona fide employee payments
Routinely waiving copays can implicate the statute
Individual hardship copay waivers are allowed
07

Stark law

Strict liability: no intent required

Physician may not refer Medicare or Medicaid patients to certain entities
Applies to designated health services
Applies when the physician has a financial relationship with the entity
Also applies when an immediate family member has that relationship
Medicare's physician definition does not include NPs
So Stark's text does not reach an NP's own referrals
It does reach a physician who directs or controls another's referrals
Anti-Kickback applies to any person

CMS's page states the Stark bar for Medicare; OIG's Roadmap includes Medicaid. The NP point is inferred from the definitions in 42 U.S.C. 1395x(r) and 42 CFR 411.351; no CMS statement specific to NPs was found, and NP arrangements with physicians still need legal review. Designated health services: clinical lab; PT, OT and speech therapy; radiology and imaging; radiation therapy; DME; parenteral and enteral nutrition; prosthetics and orthotics; home health; outpatient drugs; and hospital services.

08

Stark law or Anti-Kickback Statute?

Stark lawAnti-Kickback Statute
IntentStrict liability; no intent neededKnowing and willful
WhoPhysicians and their entitiesAnyone paying or receiving
CoversDesignated health servicesAny federal program item or service
ConductReferral with a financial relationshipAnything of value for referrals
ProtectionMust fit an exceptionMust fit a safe harbor
SanctionsFines and exclusionFelony, fines, prison, exclusion
09

Exclusion and overpayments

Conviction: OIG must exclude for Medicare or Medicaid fraud
Conviction: OIG must exclude for patient abuse or neglect
Mandatory exclusion lasts at least 5 years
Screen staff against the exclusion list screen staff
Excluded clinicians' services, orders and prescriptions are not paid
Report and return a Medicare overpayment within 60 days after it is identified 60-day deadline
Identified: knowingly received or retained (False Claims Act definition)
Or by the cost report due date, if later

The 60-day deadline can be suspended during a timely good-faith investigation of related overpayments, for up to 180 days.

10

OIG's seven compliance program elements

Written policies
Compliance leadership and oversight
Training
Open lines of communication
Enforced standards and incentives
Risk assessment and auditing
Responding to detected offenses with corrective action

Since Program Year 2021, Open Payments covers nurse practitioners, physician assistants, clinical nurse specialists, CRNAs, anesthesiologist assistants and nurse midwives, so industry payments to NPs are publicly reported.

Pearl

Stark needs no intent; kickbacks need knowing and willful; False Claims includes reckless disregard.

Sources · CMS: CY 2026 PFS Final Rule, Quality Payment Program Fact Sheet and Policy Comparison Table (open copy) · ACAAI: 2026 MIPS final policies · mdinteractive: 2026 MIPS rules, eligibility and low-volume threshold · HHS-OIG: Fraud & abuse laws, A Roadmap for New Physicians · 31 U.S.C. 3730: Civil actions for false claims · Federal Register: DOJ civil monetary penalties inflation adjustments for 2025 · 42 U.S.C. 1320a-7b: Criminal penalties for acts involving federal health care programs · 42 U.S.C. 1320a-7: Exclusion from federal health care programs · 42 CFR 411.351: Stark law definitions, referring physician · 42 U.S.C. 1395x(r): Medicare definition of physician · CMS: Physician self-referral law · 42 CFR 401.305: Report and return of overpayments · ASA: CY 2026 Medicare conversion factors higher for physicians in APMs · Taft: CMS MACRA final rule, MIPS clinicians and Advanced APM criteria · Oregon Health Authority: LAN APM framework · CMS: Medicare Shared Savings Program · CMS: Transforming Episode Accountability Model (TEAM) · Crowell: OIG General Compliance Program Guidance, overview of the seven elements · CMS bulletin: Program Year 2021 Open Payments data (new covered recipients) · American Urological Association: MACRA and the Quality Payment Program · HFMA: CY 2027 PFS proposed rule summary, Part III, Quality Payment Program · 42 CFR 414.1405: MIPS payment adjustments · 42 CFR 414.1415: Advanced APM criteria · 42 U.S.C. 1395l(z): Incentive payments for participation in eligible alternative payment models · CMS: CY 2026 Medicare Physician Fee Schedule final rule fact sheet · Federal Register: DOJ civil monetary penalties inflation adjustments for 2026 (no adjustment) · HHS-OIG: Background information on exclusion authorities · HHS-OIG: General Compliance Program Guidance (November 2023) · Follow your institution's protocols.