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Instructions:1. Identify 4 healthcare regulatory issues that arise from var

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Instructions:1. Identify 4 healthcare regulatory issues that arise from various portions of the fact prompt2. For each of the four healthcare regulatory issues you identify:a. Describe the specific facts that raise the healthcare regulatory issue you identify. Keep in mind, certain facts may raise more than one healthcare regulatory issue! Explain them each time, regardless.b. Explain all relevant details of the healthcare regulatory issue raised by those specific factsc. Explain why/how the fact scenario implicates the healthcare regulatory issue you identifyd. Provide your recommendations on what must happen (or should have happened) to ensure compliance with the healthcare regulatory issu3. For each of your four issues, provide your answers in the ORDER outlined in instruction 2.Grading Considerations:1. Grammar/writing skills2. Organized presentation of answers3. Completeness of content requested in the specific instructions4. Accurately identifying issues that arise in the given fact scenario5. Written demonstration that you are tying the facts to the relevant regulations6. Unique insights into identifying/solving regulatory issues raised through the fact scenarioFact ScenarioThe Hipster Health System (“Hipster”) was located in Austin, Texas. It was a super-hip health system, offering services to the entire Austin community. It liked to be first to offer new services and to provide services that would appeal to the “Keep Austin Weird” vibe. A live three-piece band played rhythm and blues music (softly) every evening in the lobby of the flagship hospital. Doctors and staff were encouraged to be eclectic in their dress while still meeting infection control requirements.The system had 5 hospitals (4 adult acute, 1 children’s) in and around Austin. It ran its own pharmacy, is the sole member (but with a board of directors of all-physicians) of the Keep Austin Weird Physicians Group (KAWPG), has 2 surgery centers, 5 radiology centers, 2 large office buildings and a dozen smaller office buildings near its hospitals. Every hospital and the surgery centers were licensed by CMS. The system usually served 40% Medicare patients, 15% Uninsured patients, 10% Medicaid patients (mostly labor and delivery services) and 35% Privately Insured patients. The health system’s hospital operations, pharmacy and ancillary services were tax exempt. The physician’s group was a taxable entity. One surgery center was tax exempt. The other surgery center was a taxable entity in which Hipster had physician partners who owned 49% of the center.Dr. Imacoolguy (“Dr. I”) was the physician leader of KAWPG. Dude Awesome was the CEO of the health system (they call him “the Dude”). The two had been good friends since high school where they both played football at Austin High School. They helped keep Austin weird by going out with their spouses 2-3 times a month to the Broken Spoke dance hall or various restaurants around Austin.One night, Dr. I was stuck in traffic for 45 minutes trying to drive the short three miles to his house from his offices in horrific Austin traffic. He received a call from a sales rep, Johnny Dollar, who worked for We’re Gigantic Pharma and Medical Supply. Johnny had a deal for Dr. I. A new medical device had just tested in the company’s labs that needed testing in hospital or surgical center settings. The implantable device was designed to be placed at the base of the skull on any patient and enabled the patient to then play blues guitar like Stevie Ray Vaughn. Johnny said they believed the device would revolutionize neurosurgery and the world of music.Dr. I was very excited to try out the device, yet FDA approval had not been obtained. He called the Dude’s assistant to schedule a meeting to discuss the opportunity.Two days later, Dr. I and the Dude met at Scholtz Garten over a beer. Dr. I explained the new opportunity. The Dude listened carefully and asked, “Would using the new device increase our expenses or our revenues? I don’t understand the business model.” Dr. I responded, “I think it will be free as part of a research protocol paid by We’re Giant Pharma. Of course, if I begin this work, I will be too busy to continue my regular neurosurgery services for Hipster Health. We’d want to recruit a new neurosurgeon to KAWPG – and I’d ask you to support that new surgeon’s practice until they are experienced and build a practice here.”The Dude was excited but wary. He thought carefully about how super hip it would be to be part of high-end research and testing of the new device. This could make Hipster the hippest health system in the U.S. He thought such a cool procedure could really pull the system together – just like a good rug really pulls a room together. But the Dude needed the planned revenues from the lucrative regular neurosurgery practice he and Dr. I built together over the prior 10 years. He had a budget to make and a board of trustees to keep happy.The Dude began to speak, “Well, the new device sounds great. And I can support the cost of a new surgeon to replace your time – but I would need to offset that expense by reducing another expense – or increasing revenue. Would you need to send your patients getting the new device for extra radiology procedures to ensure the device is in the right place and working well?”Dr. I responded, “The company didn’t say anything about that. But I think I could commit to send all the radiology I need to your facility, including procedures to look at the new device, if you would give me the opportunity to do the device research. I’m sure we could ask each patient’s insurance to cover that!” With a large smile, the Dude agreed to the arrangement.Dr. I began using the device in the surgical suite immediately – and tripled the volume (and revenues) of radiology sent to Hipster. Everyone heard the Dude was happy about this arrangement as was Dr. I. A new physician was recruited to KAWPG on contract to the group. He immediately joined the medical staff. The Dude paid KAWPG $500,000 in year one to support the new surgeon’s transition to practice at Hipster. The following year the Dude paid KAWPG an additional $100,000 to give the new surgeon as a “stay on” bonus payment.After four years, Hipster and Dr. I successfully achieved fame and fortune and became the place to receive the new implantable procedure. Wanna-be musicians from everywhere waited to receive the super cool device. The FDA approved the use of the device based on the work done at Hipster as well as additional patients at the Chicago Blues Health System. The blues scene in the U.S. boomed.Then the COVID-19 pandemic hit Austin. No one needed blues musicians as the economy shut down and quarantines were mandated across the U.S. Use of the implant dwindled to zero.The Dude asked Dr. I to mobilize all physicians in KAWPG to adopt telehealth services for all patients to avoid the spread of infection. KAWPG brought in new staff to support the surge of COVID-19 patients. The Dude doubled the nursing workforce to serve those same COVID-19 patients. One of the Hipster office buildings and both surgery centers were used to treat COVID-19 patients who needed to be hospitalized when the Hipster system’s 4 acute care hospital beds were full.After the pandemic subsided and the music scene started to come back to Austin (and elsewhere), the Center for Medicare and Medicaid Services (CMS) randomly selected health systems to audit regarding their use of COVID-19 funds. Hipster was selected for audit.CMS auditors reviewed the use of COVID-19 federally granted funds, and also reviewed physician and nursing staffing contracts with all groups paid by these funds to treat COVID-19 patients. KAWPG and Hipster contracts were reviewed. KAWPG and Hipster employees and physicians were interviewed.After the audit – the Office of the Inspector General contacted Hipster to let them know they were pursuing reimbursement for millions of dollars from KAWPG and Hipster for many compliance violations. They would refer their work to the Department of Justice if their demands for reimbursement and substantial penalties were not met.The Dude and Dr. I were shocked and finally – for the first time – called their attorneys in to discuss KAWPG/Hipster relationships and activities.

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