What is a board's liability for not adopting a compliance program?

A key element of the 1991 United States Sentencing Commission's guidelines, used in sentencing corporations and business convicted of Federal crimes, is the provision of leniency for organizations that adopt effective corporate compliance programs. Given the increased scrutiny of healthcare organizations by Federal Investigators, the incentive to adopt corporate compliance programs has never been greater. Directors or trustees of healthcare organizations should be especially interested in adopting such programs, since recent case law suggests that they may be held personally liable for damages or losses resulting from a finding of fraud and abuse at their facilities.