What is an Anti-Kickback Law?

The Anti-Kickback Law is a federal law in the United States that prohibits the exchange of anything of value, such as gifts or money, in exchange for referrals or business involving any federal healthcare program, such as Medicare or Medicaid. The law is designed to prevent healthcare providers from receiving kickbacks or other forms of compensation in exchange for referring patients to certain healthcare providers or for ordering certain tests or procedures.

The Anti-Kickback Law applies to all healthcare providers, including doctors, nurses, hospitals, and pharmaceutical companies. Violations of the law can result in criminal and civil penalties, including fines, imprisonment, and exclusion from federal healthcare programs.

The law includes a “safe harbor” provision, which outlines certain arrangements that are not considered kickbacks and are therefore permitted. These safe harbor provisions cover a wide range of arrangements, including rental agreements for equipment or space, employee compensation, and discounts.

The purpose of the Anti-Kickback Law is to protect patients and taxpayers from fraud and abuse in the healthcare system. By prohibiting kickbacks and other forms of compensation for referrals or business, the law helps to ensure that healthcare providers make decisions based on the best interests of their patients, rather than financial gain