Drawing up a Code of Conduct to Avoid Conflicts of Interest
Jeannine LeCompte; Compliance Research Specialist
A code of conduct is necessary for two reasons: as a measure to provide legal insurance for a facility in the event of any liability involving a conflict of interest, and also to ensure that employees know exactly what the boundaries are.
Legal liability in the event of a conflict of interest can be averted or ameliorated if the facility can show that it has taken all reasonable steps to prevent such an event—and having all employees sign a code of conduct can provide a significant degree of protection, even if only on a reputational level.
In addition to the standard items contained in a code of conduct, the following elements should also be incorporated:
1. Achieving business results by illegal acts or unethical conduct is unacceptable.
2. It is expected that all personnel and external agents shall act in compliance with the requirements of applicable law and in a sound, ethical manner when rendering services to residents and when conducting business and operational functions.
3. Employees and contractors shall perform their duties in good faith and to the best of their ability and shall not obtain any improper personal benefit by their relationship with the company.
4. Other than compensation from the company, and as consistent with the conflict of interest policies, personnel shall not have a financial or other personal interest in a transaction between the company and a vendor, supplier, provider, or customer.
5. All employees have an obligation to alert the Human Resources Department of any conviction, exclusion from participating in a state of federal healthcare program, or finding that would disqualify them from providing services.
6. Employees and contractors shall not engage in any business practice intended to unlawfully obtain favorable treatment or business from any government entity or any other party in a position to provide such treatment or business.
7. Employees and contractors shall not use confidential or proprietary information about the company for their own personal benefit or for the benefit of any other person or entity.
8. Employees and contractors are prohibited from soliciting or accepting tips, personal gratuities, gifts, or other things of value from the company’s customers or others that seek to do business with the company.
9. Similarly, the offering or giving of money, services, or other things of value with the expectation of influencing the judgment or decision-making process of any purchaser, supplier, government official, or other person by the company is absolutely prohibited.
10. The company and its employees and contractors shall comply with all laws relating to kickbacks, inducements, and self-referrals.
The company must also develop and implement a regular education and training program for all employees and external agents, and maintain records of all educational programs presented to employees and relevant external agents.
