Elder Care Business Owners Should Not Pay Referral Fees
Anti-Kickback Law May Impose Hefty Penalties
(PRWEB) March 11, 2005 -- A ruling, on the books since 1972, called the Safe
Harbor Provisions states, in part, "the federal anti-kickback law's main purpose
is to protect patients and the federal health care programs from fraud and abuse
by curtailing the corrupting influence of money on health care decisions"... it
goes on to say, ... "anyone who knowingly and willfully receives or pays
anything of value to influence the referral of federal health care program
business, including Medicare and Medicaid, can be held accountable for a felony.
See http://oig.hhs.gov/fraud/docs/safeharborregulations/safefs.htm
Violations
of the law are punishable by up to five years in prison, criminal fines up to
$25,000, administrative civil money penalties up to $50,000, and exclusion from
participation in federal health care programs.
A referral service serves
both the senior and the elder care service provider in this manner:
-
Service providers register with the referral service
- A senior searching
for a service is asked for their location
- The referral company now emails,
phones or faxes each service within the desired zip code to provide you with
this referral. (You are provided the name, phone number and address of the
senior)
- You and your staff quickly respond - you know if you get there
first, you have a higher chance of contracting with the senior
- The senior
now receives multiple sales calls from nice people who all say the same thing,
"You should choose my company because we are the best"
- You contract with
the senior
- The referral company now sends you a bill. The bill is normally
based on the dollar amount you charge the senior.
(Example: An assisted
living facility that charges $3,000 per month will typically owe the referral
service a fee of $1,500. Their neighbor, the assisted living facility across the
street charges $1,500 per month and will owe the same referral service a fee for
$750.00 for the same client, same service)
Representatives of referral
companies normally earn commissions. This can also pose a concern. If a family's
income depended on earning a high commission, the temptation may be there to
direct a senior to a service that:
a. Charges more
b. Where the staff
has a history of 'closing' the sale.
If your business is searching for a
legal method to connect with the senior market, see http://www.qualityeldercare.com Searching for a service? See
http://www.seniorsapprove.com
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Source : http://www.prweb.com/releases/2005/3/prweb216831.htm