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Paying your marketers--properly.

Elizabeth Zink Pearson¹

¹Pearson & Bernard, PSC, Covington, Kentucky, USA. pbmlaw@msn.com

Caring : National Association for Home Care Magazine

|November 19, 2003

Summary

Home health agencies can now market more freely but must avoid illegal referral payments to marketers. Training on federal anti-kickback regulations is crucial for compliance and avoiding penalties.

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Area of Science:

Healthcare Administration
Marketing Law
Regulatory Compliance

Background:

The implementation of the prospective payment system has granted home health agencies increased marketing autonomy.
Agencies are increasingly seeking external marketing expertise to navigate this new landscape.

Purpose of the Study:

To clarify permissible marketing compensation methods for home health agencies.
To emphasize the importance of adhering to federal anti-kickback statutes.

Main Methods:

Analysis of federal statutes pertaining to healthcare marketing and compensation.
Review of common marketing compensation practices in the business sector.

Main Results:

Payment for referrals to marketers is explicitly prohibited by federal law.
Non-compliance with anti-kickback regulations can lead to legal repercussions.

Conclusions:

Home health agencies must understand and adhere to federal regulations regarding marketer compensation.
Comprehensive training on anti-kickback laws is essential for ensuring compliance and mitigating legal risks.

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