Time To Plan A Third-Party Compliance Program Evaluation For 2026
Compliance Program Effectiveness Evaluations are emphasized in the Department of Health and Human Services (HHS) Office of Inspector General’s (OIG) General Compliance Program Guidance, sector-specific guidance, and the Department of Justice’s Compliance Program Effectiveness Evaluation Guidelines. These sources consistently stress that compliance programs are never truly complete. They must always evolve to keep pace with the ever changing legal, regulatory, and business environment.
Independent third-party evaluations are viewed as essential tools for advancing program effectiveness. They provide objective evidence as to whether a program is functioning as intended, while also identifying opportunities for improvement and ongoing enhancement. The OIG calls for boards of directors to take an active role in overseeing such evaluations.
For many organizations, the beginning of a new year is the best time to assess the Compliance Program and use the results to inform the annual compliance workplan. However, initiating a third-party evaluation typically requires a lengthy process that involves executive approvals, budget reviews, and defining the scope of work. These steps often take several months to complete. To avoid delays and ensure the evaluation can begin early in the new year, it is advisable to start planning in the third quarter, allowing adequate time to complete any necessary preparatory steps.
When considering a third-party evaluation, it is important to select the type of review that best aligns with the organization’s needs. For early-stage programs, a simple Gap Analysis may be sufficient to identify missing elements. For more developed programs, a simple Gap Analysis may not add value, as it focuses only on documents and process outputs without assessing effectiveness of operation. In such cases, a full 360-degree Compliance Program Effectiveness Evaluation is recommended. This comprehensive review will assess not only compliance-related documentation and process outputs, but more importantly, the outcomes and the results produced by those processes. This includes conducting debriefings, interviews, focus group sessions, evaluating compliance processes, and possibly conducting an employee compliance knowledge or culture survey.
When selecting an independent third-party, organizations should ensure that proposals include the following requirements: (1) documentation of compliance program progress; (2) identification of gaps and weaknesses; (3) actionable recommendations for addressing identified weaknesses and enhancing the program; (4) proof of multimillion-dollar liability insurance; (5) certification of adherence to generally accepted independence and objectivity standards; and (6) references from similar prior engagements.
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