Matthew Krueger on Updated DOJ Compliance Guidance – 'Think about how to right-size it'

Foley & Lardner LLP partner Matthew Krueger commented on the U.S. Department of Justice’s latest update to guidance on effective compliance programs in the Report on Medicare Compliance article, “Updated DOJ Compliance Guidance Adds AI; ‘If You’re Not Doing These Things, Why Not?’”

Krueger emphasized that the guidance does not create requirements for an effective compliance program, and that instead, organizations should “think about how to right-size it.”

“The question is, what is a reasonable compliance program for your particular organization, taking into account its size and activities,” Krueger explained. “DOJ will not expect an organization with two hospitals to have the same compliance program as a 20-hospital system.”

One element of the updated guidance covers internal whistleblowers. “Making an internal report to the company before going to DOJ is a factor that will increase the amount of the whistleblower award,” Krueger noted, adding effective compliance programs are necessary to help companies address problems early on and avoid potential enforcement actions.

Between the False Claims Act and the new whistleblower awards program, “there’s more incentive for people to be whistleblowers now,” Krueger added.