As a healthcare professional, it is crucial to have a comprehensive understanding of the Federal Anti-Kickback Statute (AKS) and its Florida counterpart, the Patient Brokering Act (PBA). Violations of these statutes can result in severe consequences, including fines, imprisonment, exclusion from federal health care programs, and negative professional licensure implications. At Nicholson & Eastin, LLP, we specialize in healthcare law and can provide the guidance you need to navigate these complex regulations. Read on to learn more about the implications of these statutes and how we can assist you in ensuring compliance.

Federal Anti-Kickback Statute (AKS)

The Federal Anti-Kickback statute (“AKS”) is a criminal statute that prohibits the exchange (or offer to exchange), anything of value, in an effort to induce (or reward) the referral of business reimbursable by Medicaid, Medicare, or any other federal health care program. The consequences for violating this statute are severe, encompassing:

• Financial Penalties: A conviction for a single AKS violation can result in fines of up to $25,000.
• Imprisonment: Violators may face imprisonment for up to five (5) years.
• Exclusion: Conviction carries a mandatory exclusion from participation in federal health care programs.
• Professional Licensure Impact: Additionally, negative implications on professional licensure can be significant.
• Administrative Penalties: Violation may lead to substantial administrative penalties, potentially involving treble damages and fines of up to $50,000 for each AKS infraction.

Florida’s Patient Brokering Act (PBA)

While the Federal Anti-Kickback statute applies only to arrangements involving federal governmental payers, Florida’s Patient Brokering Act (“PBA”) is much broader, and applies to all payers, even arrangements involving self-payment. Much like the Federal AKS, Florida’s PBA includes various safe harbors however, the PBA includes safe harbors for arrangements such as those that are not prohibited by the Federal Anti-Kickback Statute.

Importance of Experienced Legal Counsel

It is imperative that the application of these statutes as well as the safe harbors and statutory exceptions that protect certain types of referral arrangements are carefully examined by experienced legal counsel, as these laws regularly affect the daily practices involved with being a healthcare professional. 

Navigating Complex Laws

The analysis of these statutes and the accompanying exceptions can be a complicated task, specifically where there is more than one legitimate purpose for an arrangement, but a less apparent purpose involves an incentive to refer patients between the parties. A Federal Court has opined that even if one purpose of the remuneration is to induce referrals, the statute is violated, regardless if the payment was also intended for a legitimate purpose.

Ensuring Compliance

Any individual in a position to refer patients in the healthcare industry, whether it be a doctor, dentist, pharmacist, nursing home or drug treatment facility, should evaluate his or her compliance with these statutes with respect to any business arrangement that could potentially involve a source of referrals for either party.

Consult Nicholson & Eastin

Nicholson &, Eastin, LLP is highly experienced in evaluating a wide array of business arrangements and advising clients on the risks associated with certain arrangements, as well as recommending precautions and best practices related to the same. If you are a professional in the healthcare industry and have any questions or concerns regarding the Federal or state anti-kickback statutes discussed briefly above, please do not hesitate to contact us for a consultation.