Patient Monitoring Services Need Increased Scrutiny to Prevent False Claims Act Enforcement Action

The Centers for Disease Control and Prevention reported that in 2021, 37% of adults had used telehealth services in the last twelve months. Telehealth can be provided through video chats, remote patient monitoring devices, and phone calls. Remote patient monitoring involves the collection and analysis of patient data used to develop and manage a treatment plan related to a chronic or acute health condition. Lenders to, buyers of, and managers of medical practices, rural health care clinics, and federally qualified health centers should increase their due diligence of remote patient monitoring services used by physicians. For lenders and buyers, the review may reveal a heightened level of transaction risk. The risk may caution whether the transaction should be completed. The risk may also inform price or inform the need and terms of an indemnity reserve.