What You Need to Know About Fee-Splitting Laws in California

In California, businesses in the health care industry are subject to a number of state and federal regulations. As a result, practices that other businesses are allowed to carry out may be considered kickbacks for entities involved in healthcare. In particular, there are various regulations governing fee splitting and physician self-referral (known as Stark).

Fee-Splitting is addressed under the Stark Law, and the Federal Anti-Kickback Statute. Fee-splitting refers to the practice of a medical practitioner referring a patient to another practitioner, and receiving some type of payment in return for the referral. This practice is regulated under federal and California statues. Therefore, all proposed ventures and professional arrangements must be examined, to ensure that they do not violate the fee-splitting laws (learn more).

Health care businesses need to be aware of what’s prohibited under the state and federal Anti-kickback Statute. The law makes reference to types of remuneration and conduct that are prohibited, especially as it relates to Medicare and other federal health care programs.

However, the Anti-Kickback Statue also outlines several ‘safe harbors’ or permissive practices. Physicians need to be certain of the areas that are considered safe harbors, in order to ensure compliance.

California health care professionals need correct legal counsel, to confirm that they understand and are compliant with the existing laws. As long as there they adhere to the stipulated requirements, they won’t have to be concerned about facing any  criminal or civil sanctions.

Nelson Hardiman, LLP has been providing legal guidance for clients in the health care industry for many years. You can be assured that our team of experienced attorneys will provide the expertise you need. If you have legal questions about fee splitting laws in California, contact us today at 310-203-2800.

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