What law transitioned compliance programs from voluntary to mandatory for some institutions?

The transition of compliance programs from voluntary to mandatory for certain healthcare institutions is primarily attributed to the Deficit Reduction Act (DRA). This law, enacted in 2005, included provisions aimed at combating fraud and abuse in federal healthcare programs. One key aspect of the DRA was the requirement for organizations receiving Medicaid funds to implement compliance programs designed to prevent and detect violations of state and federal laws.

The DRA established guidelines that outlined the necessary components of these compliance programs, ultimately creating a formal expectation for healthcare providers to take proactive measures toward compliance. This shift was significant as it represented a federal recognition of the importance of compliance programs in maintaining the integrity of healthcare services and safeguarding against fraudulent practices.

While other laws, such as the Health Insurance Portability and Accountability Act, the Affordable Care Act, and the Medicare Modernization Act, have also played vital roles in shaping healthcare legislation and compliance, they did not establish the framework for mandatory compliance programs in the same way that the DRA did. Therefore, the Deficit Reduction Act clearly stands out as the law that mandated these compliance efforts for certain institutions.