A physician seeing a patient for a specific medical concern could recommend a broad range of treatments. They could prescribe a drug to treat the symptom or the underlying condition causing the symptom. They could order someone to undergo special therapy, ranging from rehabilitative services to physical therapy. They might even recommend surgery in some cases.
Patients expect a physician recommending a specific course of treatment to make suggestions based on what is best for them, not what might enrich the doctor. However, physicians sometimes let kickback arrangements influence how they practice medicine. That can compromise the integrity of the medical system and lead to unfavorable outcomes for some patients. Therefore, the boards regulating medical professionals and lawmakers alike have enacted rules prohibiting most forms of kickbacks.
What constitutes a kickback?
People think of kickbacks as an exchange of cash. Sometimes, there are “referral bonuses” and similar arrangements that allow for purely financial kickbacks. However, often they involve other items of value. Drug companies used to provide meals, travel costs and other perks, like golf outings, when marketing to physicians. Those gifts and incentives to write prescriptions for certain medications are examples of non-monetary kickbacks. Changes in federal policy limit that conduct now, as sales strategies can quickly cross the line into kickbacks when a doctor has an incentive to prescribe certain medication.
Local businesses and even other medical professionals might also offer kickbacks to referring physicians. Someone who runs a drug or alcohol rehabilitation center might provide a finder’s fee to a physician who refers a patient struggling with a substance abuse disorder. Such arrangements violate ethical standards and also the law.
What do kickback accusations mean for physicians?
Both state law and federal anti-kickback statutes prohibit the practice of accepting compensation or perks in return for recommendations or referrals. A physician accused of participating in a kickback scheme might face criminal charges. The Minnesota state penalties for kickbacks include either a $1,000 fine or a fine that constitutes 110% of the financial benefit derived by the medical professional. There could also potentially be licensing penalties should the criminal case lead to a conviction.
Physicians accused of accepting kickbacks or other misconduct may need to fight white-collar criminal charges in addition to licensing challenges if they hope to continue practicing medicine. Medical professionals accused of taking kickbacks may have options for defending against those charges. Seeking legal guidance is a good way to get started.