Training Staff about Situations Which Can Create Possible Conflicts of Interest
Jeannine LeCompte; Compliance Research Specialist
A code of conduct typically mentions avoiding conflicts of interest in very general terms. It is a good idea to also have specific educational tools and training sessions in which specifics are spelled out. This will ensure that employees can’t claim they were unaware of a conflict of interest, and use that as a defense against any punitive action—or to shift blame to the facility.
A training session should include a full description of the types of situations which can lead to conflicts of interest. These include:
1. Financial Interests
This must be understood as any situation where an employee, or an employee’s immediate family member, is in a position to influence the business decision of the company or an outside concern and directly or indirectly:
(a) Owns or otherwise engages in the same or similar kind of business as the company, or
(b) Owns a significant interest in a competitor or concern with a current or prospective business relationship with the company.
2. Outside Activities
(a) This must be understood as any situation where an employee, or an employee’s immediate family member, serves as director, officer, employee, or representative of a competing organization, or an organization which has a current or prospective business relationship with the company.
(b) A conflict also may exist when an employee engages in a personal business venture, charitable activity, or service in public office that prevents him or her from devoting the time and effort that his or her position at the company requires.
(c) Employees may not work for, consult with, or have an independent business relationship with any of the company’s service providers, vendors, competitors, or third-party payers.
(d) Employees may not invest in any payer, provider, supplier, or competitor, except through mutual funds or minority holdings of publicly traded securities.
(e) Employees should not have other employment or business interests which appear to represent the company, provide goods or services similar to those the company provides, or in any other way interfere with the everyday duties as an employee.
(f) Employees must not use company assets for personal benefit or personal business purposes.
3. Confidential Information
Use of confidential information obtained through the employee’s relationship with the company for personal gain, or for the benefit of others, generally creates a conflict. Employees may not disclose or use any confidential information, such as financial data, payer information, computer programs, or customer information, for their own personal and business purposes.
4. Transactions Involving the Company
A conflict may exist when an employee, or an employee’s immediate family member:
(a) Buys, rents, or sells any real estate or other property from the company, except for a routine sale of the company services;
(b) Benefits personally from any purchase or sale of property by the company; or
(c) Derives personal gain from any transaction to which the company is a party.
5. Business Opportunities
An employee may not take advantage of the opportunity that comes from knowledge gained in the course of employment for his or her own benefit or that of any other person or organization.
These directives should form part of a compulsory training program for all employees, and the company must ensure that full records are kept of training attendance as an additional safeguard.
