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[Divorce fallout] Dr. Eli, following a messy divorce, has encountered significant financial difficulties. Dr. Eli has a friend named Shady Sam who tells Dr. Eli that he has been making lots of money by selling people a wristband that allegedly places pressure on a nerve that signals hunger resulting in a lack of appetite. Shady Sam tells Dr. Eli that, although the device does not really work, people who want to lose weight and look good in their bathing suits will do anything. Shady says the wristband sells like hotcakes. Shady also tells Dr. Eli that he will pay Dr. Eli five dollars for every band that Dr. Eli can sell to his patients. Dr. Eli proceeds to mail letters to patients suggesting the use of the band for weight loss. He also uses UPS to mail samples of the band to some patients along with letters encouraging purchase of the bands. Dr. Eli then proceeds to bill Medicare for office consultations he has with patients when they come in to purchase the bands. The scheme is wildly successful. Dr. Eli can entirely satisfy his alimony obligations within just a few months. Unfortunately, as patients begin to see that they are not having any weight loss, he has been receiving numerous complaints, and a friend of his told him that he could even be facing criminal prosecution.
-By which of Dr. Eli's actions, if any, did he commit health care fraud?
Inventory Policies
Guidelines or strategies used by a company to maintain optimal inventory levels and manage its inventory costs.
Stockholders Equity
Represents the ownership interest of shareholders in a corporation, calculated as total assets minus total liabilities.
Credit Policies
Guidelines that set the criteria for extending credit to customers, including terms of payment and requirements for creditworthiness.
Short-Term Debt
Short-Term Debt is borrowed money that a company must repay within the short term, typically within a year, often used for operational expenses.
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