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The Federal Travel Act may not be on your radar, but it’s worth paying attention to, as federal prosecutors are using it to target healthcare fraud and other illegal activity. Here’s how the Act works and why you should be mindful of its reach.
The Federal Travel Act (18 U.S.C. Section 1952) was enacted in 1961 to combat organized crime, but its application has evolved. At its core, the Act prohibits using the mail or “any facility in interstate or foreign commerce” to further unlawful activities. While the statute may seem straightforward, its broad definitions of “facilities in interstate commerce” and “unlawful activity” open the door to creative enforcement, particularly in the healthcare sector.
What Is a “Facility in Interstate Commerce”?
The term “facility in interstate commerce” refers to tools or systems used to communicate or transport across state lines. For healthcare providers, this can include phone calls, email, electronic medical records (EMRs), or telehealth systems. For example:
- A physician in New York calls a health plan in Illinois. That phone call qualifies as using a facility in interstate commerce.
- A group of doctors uses their EMR system to electronically submit fraudulent Medicare claims. Because the internet is involved, the system is considered a facility in interstate commerce.
- A psychiatrist conducts a telehealth appointment with an out-of-state patient but bills for services that weren’t provided. The telehealth session and billing process could be considered unlawful use of a facility in interstate commerce.
What Qualifies as “Unlawful Activity”?
The Act broadly defines unlawful activity, including bribery, extortion, gambling, and drug-related offenses. When combined with other healthcare-specific statutes, like anti-kickback or fee-splitting laws, the Travel Act becomes a powerful tool for prosecutors.
For example, in 2021, federal prosecutors in Texas convicted 14 defendants involved in a $200 million healthcare fraud scheme. The scheme included $40 million in illegal kickbacks to doctors disguised as “marketing money.” Although anti-kickback violations are already punishable under other laws, the Travel Act added another layer of enforcement, allowing for harsher penalties.
See our related video, “What is the Anti-Kickback Statute?”
Why Healthcare Practice Owners Should Take Note
This decades-old law has seen renewed focus. The federal government is increasingly using the Travel Act to prosecute healthcare providers for a wide range of violations, including:
- Fraudulent billing practices
- Violations of anti-kickback and fee-splitting laws
- Other activities that defraud federal and private payors
This trend shows no signs of slowing down. Even routine business activities like telehealth sessions, billing submissions, or vendor arrangements could come under scrutiny if they involve interstate communications or transactions tied to unlawful conduct.
Get Legal Support
The legal landscape in healthcare is complex and constantly changing. Our experienced attorneys can help you comply with federal and state regulations to protect your practice. If you’re located in one of the states where we practice, schedule a free consultation to learn how we can support you.
This blog is made for educational purposes and is not intended to be specific legal advice to any particular person. It does not create an attorney-client relationship between our firm and the reader. It should not be used as a substitute for competent legal advice from a licensed attorney in your jurisdiction.
