§ 90-407. Disciplinary action and penalties. - North Carolina Statutes

§ 90‑407. Disciplinary action and penalties.

(a)        Any violation of this Article shall constitute grounds fordisciplinary action to be taken by the applicable Board pursuant to Chapter 90of the General Statutes.

(b)        Any health care provider who refers a patient in violationof G.S. 90‑406(a), or any health care provider or entity who

(1)        Presents or causes to be presented a bill or claim forservice that the health care provider or entity knows or should know isprohibited by G.S. 90‑406(b), or

(2)        Fails to make a refund as required by G.S. 90‑406(c),

shallbe subject to a civil penalty of not more than twenty thousand dollars($20,000) for each such bill or claim, to be recovered in an action institutedeither in Wake County Superior Court, or any other county, by the AttorneyGeneral for the use of the State of North Carolina.

(c)        Any health care provider or other entity that enters into anarrangement or scheme, such as cross‑referral arrangement, that thehealth care provider or entity knows or should know is intended to inducereferrals or patients for designated health care services to a particularentity and that, if the health care provider directly made referrals to suchentity, would violate G.S. 90‑406(d), shall be subject to a civil penaltyof not more than seventy‑five thousand dollars ($75,000) for each suchcircumvention arrangement or scheme, to be recovered in an action institutedeither in Wake County Superior Court, or any other county, by the AttorneyGeneral for the use of the State of North Carolina. No civil penalty shall beassessed hereunder for any arrangement fully disclosed to the Attorney Generalin writing which receives a favorable determination by the Attorney Generalthat, in his opinion, such arrangement is not a violation of G.S. 90‑406,until a contrary determination is made in a court of law.

(d)        The clear proceeds of civil penalties provided for in thissection shall be remitted to the Civil Penalty and Forfeiture Fund inaccordance with G.S. 115C‑457.2. (1993, c. 482, s. 1; 1998‑215, s. 74.)