Legal Question in Health Care Law in California
I run a dental practice and I would like to reward patients for referring other patients. I've heard that this is illegal, but I've seen several other offices doing it. Is it legal to incentivize referrals?
1 Answer from Attorneys
You may be in violation of federal law and state laws and your code of ethics. Generally, federal and state anti-kickback statutes prohibit fees to be paid for referrals. The federal law depends, in part, on whether or not the health care provider receives payments from federal sources (e.g. Medicare, Medicaid), state law does not appear to address sources of income. I have experience with health care providers, but not specifically with dental practices. Thus, additional research and analysis would be needed for a comprehensive legal opinion as to dental practices. Please feel free to contact me if you seek such an opinion.
In addition, your code of ethics appears to address the proper disclosure of referral fees.
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