www.whiteblacklegal.co.in ISSN: 2581-8503 VOLUME 2 : ISSUE 3 || July 2020 || Email: [email protected] Website: www.whiteblacklegal.co.in 1 www.whiteblacklegal.co.in ISSN: 2581-8503 DISCLAIMER No part of this publication may be reproduced or copied in any form by any means without prior written permission of Editor-in-chief of White Black Legal – The Law Journal. The Editorial Team of White Black Legal holds the copyright to all articles contributed to this publication. The views expressed in this publication are purely personal opinions of the authors and do not reflect the views of the Editorial Team of White Black Legal. Though all efforts are made to ensure the accuracy and correctness of the information published, White Black Legal shall not be responsible for any errors caused due to oversight or otherwise. 2 www.whiteblacklegal.co.in ISSN: 2581-8503 EDITORIAL TEAM EDITOR IN CHIEF Name - Mr. Varun Agrawal Consultant || SUMEG FINANCIAL SERVICES PVT.LTD. 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The erudite response of legal luminaries shall be solicited to enable readers to explore challenges that lie before law makers, lawyers and the society at large, in the event of the ever changing social, economic and technological scenario. With this thought, we hereby present to you WHITE BLACK LEGAL: THE LAW JOURNAL 4 www.whiteblacklegal.co.in ISSN: 2581-8503 WHITE COLLAR CRIME IN HEALTH CARE SECTOR (Submitted By : Adv. Richa Kumari Singh) DECLARATION This article is based on the topic White Collar Crime In Health Care Sector, submitted by Richa Kumari Singh, for the course publishing it at Kalinga Institute of Industrial Technology, it is my original work carried out under my hard work and researching ability. The research work has not been submitted elsewhere for award of any publishing certificate or any other purpose whatsoever. The comments made in this project on any policy/legislation are my own. The material borrowed from other sources and incorporated in the research has been duly acknowledged. I understand that I could be held responsible and accountable for plagiarism, if any, even if detected later. DATE : July 31, 2020 Name of the Researcher: Richa Kumari Singh 5 www.whiteblacklegal.co.in ISSN: 2581-8503 ABSTRACT White-collar crime refers to financially motivated, non-violent crime committed by businesses and government professionals. White collar crime bleeds over into corporate crimes because crimes such as fraud, forgery, insider trading, bribery, computer crimes are more available to the white collar employees, these are usually committed by government employees and professionals, Though White Collar Crime is almost in every corporate institution be it Insurance Company, but the main matter of concern for the author is White collar crime in Health Care sector. White Collar Crimes that can take place in medical and health care sector:- Making false medical certificates by the doctors Fake and intended prolong the treatment in order to increase the bills Sex determination of child by the doctors on the compulsion of the patient to gain money Sale of sample medicines which are not allowed to the chemists The rate at which white collar crimes are increasing has become a matter of concern globally. It has been found that the detriment that white collar crimes cause to society is much more than other forms of crime, it is impacting a large no of people in the society as well. This can be prevented by uploading the data of fake doctors so that patient can be more careful, or by visiting each doctor on the ground to their registration biometric details along with the copies of their medical degrees. Presently India does not have any special law regarding white collar crime, presently IPC has certain provisions which keeps an eye on this topic. Indian government must improve governance and take strict action against the offenders. Comptroller Auditor General is showing the way forward, the need of the hour is for political parties to have the spirit to clean up the mess. The private sector must implement fraud prevention measures and focus on ethics to reduce frauds. Both sectors have to collaborate to minimize fraud risks in India. MAIN MANUSCRIPT “Let not the mighty and rich think that courts are their paradise and in the legal arena they are the dominant players”. (Supreme Court of India)1 1 Rathinam v. State of Tamil Nadu &Anr, (2011) 11 SCC 140. 6 www.whiteblacklegal.co.in ISSN: 2581-8503 INTRODUCTION The intent of this research paper is to analyze the various medical and health care frauds which are prevalent in the society for so long and to interconnect it with white collar crimes, to understand the scenario and to put forward the measures which can be taken to eradicate such practices. People trust the medical practitioners and if any malfunctioning takes place there the trust and security will fall down. HISTORY Society is changing very frequently also the law is changing with it, we Have seen that of late the activities of stat have multiplied to great extent. State is no longer a police state and this shift from police state to welfare state has contributed in large increase in the state activities. It has opened a new vista for state activity. These changes have had their effect on the penal laws2. A few types of crime have become obsolete and many new form of crime have taken different dimensions in the present scenario. Dating back to history, it is an undaunted fact that ever since human being stated living together commission of crime has erupted, White Collar Crime is not a new phenomenon. In the ancient and Medival literatures of India felt that there was an age when ‘Dharma’ prevailed in perfection but gradually ‘Adharma’ made its headway giving rise to the tendencies like theft, fraud, etc. The history of India’s first major corporate crime dates back to 1957, when LIC v. hari Das Mundhra3 had shaken the country with then government constituting Justice Chagla commission of inquiry had made certain critical observations regarding dubious dealings in the public sector institutions. LIC bought 1.24 crores of fraudulent stocks in six companies owned by Haridas Mundhra, this was the largest investment of LIC’s history, later on Harshad Mehta’s Scam, Satyam Scam, Sahara fraud had come under spotlight forcing the central govt. to formulate laws for ethical corporate governance4. MEANING OF WHITE COLLAR CRIME (WCC) These are the non-violent crimes that involve deceit, corruption, and breach of trust usually out of greed. White collar crime bleeds over into corporate crimes because crimes such as fraud, 2 Mahesh Chandra, socio economic offences24(1979). 3 https://indiankanoon.org/doc/1450436/, last visted 15.07.20. 4 Mohit Kar, White Collar Crime – A fast emerging trend in India, Centre for Criminal Law, NUSRL, Ranchi. 7 www.whiteblacklegal.co.in ISSN: 2581-8503 forgery, insider trading, bribery, computer crimes are more available to the white collar employees, these are usually committed by government employees and professionals. FEATURES OF WCC 1. WCC are crimes committed by the people of high class and status in the society such as government officials, doctors, advocates, charted accountants and other professional’s businessmen etc. and not by a layman and hardcore criminals. 2. Means of crime differ from the traditional crimes as fraud, misrepresentation, adulteration, malpractices, irregularities etc. 3. These are the crimes committed by means and planned conspiracies without any feelings and sentiments. 4. The victim of WCC is normally the major section of the society or even the entire nation besides the individual who has done that. 5. The financial losses from the WCC to the society are probably greater than the financial losses from burglaries, robberies and larcenies committed by persons of lower socio- economic class. WHITE COLLAR CRIME AS A TREND High profile fugitives who made their fortune using public money have fled with the proceeds of the crime to overseas countries. There are many instances like Vijay Mallya, Nirav Modi, Mehul Choksey and many more. As things are emerging, White Collar Crime is spreading its wing not only in the developed world like USA, but in emerging economies like India as well. WHITE COLLAR CRIME IN HEALTH CARE SECTOR / MEDICAL PROFESSION Health care fraud is not a victimless crime. The diversion of funds due to fraud drives up the costs of providing a full range of legitimate medical services and may foster mechanisms designed to recoup these losses. These efforts may result in reduced benefit coverage, changes in eligibility for programs such as Medicaid, higher premiums for individuals or their employers, or higher copays. Physicians may perform unnecessary procedures to increase reimbursement, compromising patient safety. When medical providers bill for services never rendered, they create a false medical history for patients that may later cause them difficulty in obtaining disability or life insurance policies. An inaccurate medical history may also influence treatment decisions and allow some 8 www.whiteblacklegal.co.in ISSN: 2581-8503 insurance companies to deny coverage based on a previous medical condition.