When one of my lawyer friends first mentioned the Red Flag Rules to me, I was a little bit perplexed. I think we do a terrific job here at Part B News staying on top of the latest news that impacts physician practices, but this was late last summer and I hadn't ever heard of the Red Flag Rules.
It turned out I was not alone. When we first started to talk about the Red Flag Rules in Part B News and the Medicare Compliance Alert, a sister publication, we got a couple of calls and a handful of questions. But with a May 1 implementation deadline looming, suddenly physician practices are much more interested.
The basic thing you need to know is that the Federal Trade Commission is implementing the Red Flag Rules and has clearly stated they apply to physician practices, because you act as a creditor when you treat patients who pay you at a later date. Violations of the Red Flag Rules, designed to protect patients from identity theft, expose you to fines of up to $2,500 per violation.
You're required to maintain a written plan for how your practice is taking steps to protect patient identities. I've asked Lisa Asbell to give practices a thorough explanation of Red Flag Rules in a DecisionHealth teleconference April 7. She brings a unique perspective as an identity theft expert and a registered nurse.
I hope you can join us. For details, visit http://www.decisionhealth.com/conferences/A1753/home.html.