Conflict of Interest

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I work in a nursing home that bought a wound management company. If a patient gets a stage 2 wound we are directed to notify their MD and get an order for this 1 wound company ( by name) to eval and treat. Then we need to get consent from the responsible party for billing. The nursing home never discloses their relationship with the wound management company to the families or patient, nor are they offered an alternative. This cash cow is a huge conflict of interest as my facility now has a vested interest in the patients acquiring wounds! I'm here to ask more experienced nurses- this smacks of being unethical- but is it also illegal? If so, what law(s) and who do I notify?

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Specializes in Peri-Op.

FEderal trade commission. Violates antitrust laws.

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Specializes in Hem/Onc/BMT.

Hmm... I never encountered such thing, but yeah, it does sound like a conflict of interest that could potentially cause harm. All the LTC facilities I've seen have posters with information on contacting ombudsmen. I think you could contact them regarding this matter. Either that, or contact the state.

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Specializes in NICU.

It is a violation of the Stark Law.

"Physician self-referral is the practice of a physician referring a patient to a medical facility in which the physician has a financial interest, be it ownership, investment, or a structured compensation arrangement. Critics argue that this practice is an inherent conflict of interest, because the physician benefits from the physician's own referral."

Stark Law - Wikipedia, the free encyclopedia

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Specializes in Critical Care, ED, Cath lab, CTPAC,Trauma.

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