There are numerous reasons an individual or entity could be excluded. Federal and state agencies sanction, suspend, exclude or debar individuals and companies from federally funded benefit programs for a variety of reasons, including fraud, drug abuse, issues with licensure, healthcare related misdemeanors or felonies and defaulting on federally backed student loans. Forty-two states, along with the two federal government agencies, maintain exclusion lists that are updated on a regular basis.
If a person or entity is excluded, they cannot receive direct or indirect payment from federal benefit programs. Healthcare organizations cannot make payments to such vendor or person, without incurring a fine or penalty.
A complete list of all exclusion sources can be found here.