Full question:
I rent (lease) surgical lasers equipment to hospitals, surgery centers, and Doctor office in Southern California. My question is simple.. Can I give money back to doctors in the form of a cash rewards card earned for each time equipment is rented? I know that LLC partnerships with Physicians and vendors is no longer legal.
- Category: Consumer
- Subcategory: Unfair Practices or Competition
- Date:
- State: California
Answer:
The Stark statute applies only to physicians who refer Medicare and Medicaid patients for specific services ("designated health services," or DHS) to entities with which they (or an immediate family member) have a "financial relationship."
Many of the Stark exceptions require that any compensation involved be calculated in a manner that does not take into account the "volume or value of referrals" between the parties. However, the regulations also state that time-based or unit-of-service-based payments are allowed "even when the physician receiving the payment has generated a payment through a DHS referral." For example, if a group of pulmonologists leases an X-ray machine from a group of family physicians who otherwise refer to the pulmonologists, the rent paid to the family physicians generating the referrals can be paid on a "per click" basis. In this type of situation, the amount paid to the physician who is making the referral will not violate the Stark statute as long as the payment per unit is at fair market value and does not change during the term of the contract that establishes the relationship.
To violate the anti-kickback law, one must knowingly and willfully offer or pay, solicit or receive remuneration in exchange for referring a patient for an item or service payable by the government, or for ordering or arranging for ordering any such item or service. The answer will depend on all the circumstances, such as whether federal funds are involved. I suggest you contact a local attorney who can review all the facts and documents involved.
Please see the following CA statute to determine applicability:
http://www.leginfo.ca.gov/cgi-bin/displaycode?section=bpc&group=00001-01000&file=650-657
For further discussion, please see:
http://www.aafp.org/fpm/20031100/27thes.html
http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=42&PART=1001&SECTION=952&YEAR=2001&TYPE=TEXT
http://www.acr.org/SecondaryMainMenuCategories/BusinessPracticeIssues/FeaturedCategories/AntiKickback/AntiKickbackLawandSuspectFinancialAgreementsFAQDoc3.aspx
http://quitamguide.org/stark-law-limitation-on-certain-physician-referrals
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
