Health Law Daily Wrap Up, ADMINISTRATION OF MEDICARE/MEDICAID PROGRAMS—DAB DECISIONS: DAB upholds exclusion after disciplinary surrender of nursing license, (Jan 21, 2026)
The ruling clarifies that a separate active license in another state does not bar exclusion, though it may be relevant to a future request for early reinstatement.
An administrative law judge (ALJ) upheld the Inspector General’s (IG’s) decision to exclude an individual from participation in all federal health care programs, finding that the exclusion was legally authorized and reasonable in duration. The ALJ found that the individual voluntarily surrendered a registered nurse license while a formal state disciplinary proceeding was pending and that the circumstances satisfied the statutory criteria for permissive exclusion. Although the decision noted the possibility of early reinstatement, the ALJ affirmed the exclusion (Denesha Latoya Knight, DAB No. CR6538, Docket No. C-24-285 (Sept. 20, 2024)).
License surrender. The evidence showed that the individual relinquished a Florida registered nurse license after state authorities investigated allegations that the license had been obtained using a fraudulent nursing diploma. The voluntary surrender was executed to avoid further administrative action and was formally accepted by the state board of nursing as a disciplinary resolution. The ALJ determined that the surrender occurred during an active disciplinary process and was directly related to professional competence, regardless of whether the individual admitted wrongdoing.
Other license insufficient. The individual argued that exclusion was inappropriate because an active, unencumbered licensed practical nurse credential remained in another state and the individual wished to continue working and pursuing further education. The ALJ rejected that argument, explaining that the exclusion statute does not require the loss of all health care licenses and that another state license is relevant only to a potential request for early reinstatement. Because no reinstatement application had been filed and the surrendered license had not been restored, the ALJ found that an indefinite exclusion was warranted and affirmed the IG’s determination.
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