§ 1001.701 Excessive claims or furnishing of unnecessary or substandard items and services. ( a ) *Circumstance for exclusion.* The OIG may exclude an individual or entity that has— ( 1 ) Submitted, or caused to be submitted, bills or requests for payments under Medicare or any of the State health care programs containing charges or costs for items or services furnished that are substantially in excess of such individual's or entity's usual charges or costs for such items or services; or
( 2 ) Furnished, or caused to be furnished, to patients (whether or not covered by Medicare or any of the State health care programs) any items or services substantially in excess of the patient's needs, or of a quality that fails to meet professionally recognized standards of health care.
( b ) The OIG's determination under paragraph (a)(2) of this section—that the items or services furnished were excessive or of unacceptable quality—will be made on the basis of information, including sanction reports, from the following sources: ( 1 ) The QIO for the area served by the individual or entity;
( 2 ) State or local licensing or certification authorities;
( 3 ) Fiscal agents or contractors, or private insurance companies;
( 4 ) State or local professional societies; or
( 5 ) Any other sources deemed appropriate by the OIG.
( c ) Exceptions. An individual or entity will not be excluded for— ( 1 ) Submitting, or causing to be submitted, bills or requests for payment that contain charges or costs substantially in excess of usual charges or costs when such charges or costs are due to unusual circumstances or medical complications requiring additional time, effort, expense or other good cause; or
( 2 ) Furnishing, or causing to be furnished, items or services in excess of the needs of patients, when the items or services were ordered by a physician or other authorized individual, and the individual or entity furnishing the items or services was not in a position to determine medical necessity or to refuse to comply with the order of the physician or other authorized individual.
( d ) *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 set forth in paragraphs (d)(2) and (d)(3) of this section form a basis for lengthening or shortening the period. In no case may the period be shorter than 1 year for any exclusion taken in accordance with paragraph (a)(2) of this section.
( 2 ) Any of the following factors may be considered aggravating and a basis for lengthening the period of exclusion— ( i ) The violations were serious in nature, and occurred over a period of one year or more;
( ii ) The violations had a significant adverse physical, mental or financial impact on program beneficiaries or other individuals;
( iii ) Whether the individual or entity has a documented history of criminal, civil or administrative wrongdoing;
( iv ) The violation resulted in financial loss to Medicare, Medicaid, or any other Federal health care program of $15,000 or more; or
( v ) 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 factor may be considered mitigating and a basis for reducing the period of exclusion: Whether there were few violations and they occurred over a short period of time.
[57 FR 3330, Jan. 29, 1992, as amended at 63 FR 46688, Sept. 2, 1998; 82 FR 4114, Jan. 12, 2017]