Closely associated with Anti-Kickback and Anti-Referral laws, Fee Splitting is another in the family of healthcare fraud and abuse laws. Fee splitting occurs when a healthcare professional shares a portion of patient collectibles with another person or entity in exchange for patient referrals. This activity is governed by state law and varies in its application and severity from state to state.
For example, not only do Washington and North Carolina prohibit kickbacks, they have outlawed fee splitting of any kind; and a healthcare professional can lose their license for doing so. California, has a very strict and punitive fee splitting law. It criminalizes any sharing of patient fees with someone for referring business and is closely tied to the state’s Anti-Kickback statute. By the same token, New York prohibits fee splitting, defined as sharing fees with an unlicensed person or entity as a quid pro quo for patient referrals.
Many states have no fee splitting laws. But those that do define the activity slightly differently from others and have varying degrees of consequences for violations, including fines, loss of license or disciplinary action, and even jail time.
Call us to help you understand the fee splitting laws in your state and structure your marketing and other activities to keep you far from trouble.