§ 1001.201 Conviction relating to program or health care fraud. ( a ) *Circumstance for exclusion.* The OIG may exclude an individual or entity convicted under Federal or State law of— ( 1 ) A misdemeanor relating to fraud, theft, embezzlement, breach of fiduciary responsibility, or other financial misconduct— ( i ) In connection with the delivery of any health care item or service, including the performance of management or administrative services relating to the delivery of such items or services, or
( ii ) With respect to any act or omission in a health care program, other than Medicare and a State health care program, operated by, or financed in whole or in part by, any Federal, State or local government agency; or
( 2 ) Fraud, theft, embezzlement, breach of fiduciary responsibility, or other financial misconduct with respect to any act or omission in a program, other than a health care program, operated by or financed in whole or in part by any Federal, State or local government agency.
( b ) *Length of exclusion.* ( 1 ) An exclusion imposed in accordance with this section will be for a period of 3 years, unless aggravating or mitigating factors listed in paragraphs (b)(2) and (b)(3) of this section form a basis for lengthening or shortening that period.
( 2 ) Any of the following factors may be considered to be aggravating and a basis for lengthening the period of exclusion— ( i ) The acts resulting in the conviction, or similar acts, caused or reasonably could have been expected to cause, a financial loss of $50,000 or more to a government agency or program or to one or more other entities or had a significant financial impact on program beneficiaries or other individuals. (The entire amount of financial loss will be considered, including any amounts resulting from similar acts not adjudicated, regardless of whether full or partial restitution has been made);
( ii ) The acts that resulted in the conviction, or similar acts, were committed over a period of one year or more;
( iii ) The acts that resulted in the conviction, or similar acts, had a significant adverse physical or mental impact on one or more program beneficiaries or other individuals;
( iv ) The sentence imposed by the court included incarceration;
( v ) Whether the individual or entity has a documented history of criminal, civil or administrative wrongdoing; or
( vi ) Whether the individual or entity has been convicted of other offenses besides those that formed the basis for the exclusion; or
( vii ) Whether the individual or entity has been the subject of any other adverse action by any Federal, State, or local government agency or board if the adverse action is based on the same set of circumstances that serves as the basis for the imposition of the exclusion.
( 3 ) Only the following factors may be considered as mitigating and a basis for reducing the period of exclusion— ( i ) The individual or entity was convicted of three or fewer offenses, and the entire amount of financial loss (both actual loss and reasonably expected loss) to a government agency or program or to other individuals or entities due to the acts that resulted in the conviction and similar acts is less than $5,000;
( ii ) The record in the criminal proceedings, including sentencing documents, demonstrates that the court determined that the individual had a mental, emotional, or physical condition, before or during the commission of the offense, that reduced the individual's culpability; or
( iii ) The individual's or entity's cooperation with Federal or State officials resulted in— ( A ) Others being convicted or excluded from Medicare, Medicaid or any of the other Federal health care programs, or
( B ) Additional cases being investigated or reports being issued by the appropriate law enforcement agency identifying program vulnerabilities or weaknesses, or
( C ) The imposition of a civil money penalty against others; or
( iv ) Alternative sources of the type of health care items or services furnished by the individual or entity are not available.
[57 FR 3330, Jan. 29, 1992, as amended at 63 FR 46687, Sept. 2, 1998; 64 FR 39426, July 22, 1999; 67 FR 11932, Mar. 18, 2002; 67 FR 21579, May 1, 2002; 82 FR 4112, Jan. 12, 2017]