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This is a question about compliance for medical practices and chiropractors. We have a med spa business concept that involves offering our brand, access to pharmaceutical discounts, and expertise to help an existing practice expand into the med spa business from their existing office.This will be offered on a 50/50 basis: the practitioner will refer his/hers existing clientele and we will generate leads from advertising.All consultations and prescriptions etc will be done by the practitioner in his/hers office.For example "Med Spa Brand" has signed contracts with a dozen practitioners in the area. Med Spa Brand runs a television ad advertising Med Spa's effective medical weight loss program. Prospective patients call the 1-800 number and are referred to Practitioner B who conducts the consultation etc in accordance with Med Spa Brand protocol and packaged pricing.Question:1 - Does Med Spa Brand or Practitioner need to be aware of any regulations/laws that would inhibit this type of referral/partnership business?2- Assuming Med Spa Brand may be able to offer referral business, can practitioner refer his/her own patients for services administered within his/her clinic and for the partial benefit of Med Spa Brand?Thank you!
Submitted: 6 months ago.Category: Business Law
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Answered in 3 hours by:
10/10/2017
Business Lawyer: Asad Rahman, Attorney replied 6 months ago
Asad Rahman
Asad Rahman, Attorney
Category: Business Law
Satisfied Customers: 2,400
Experience: Practicing Attorney with 10 years experience
Verified

So your referral arrangement potentially exposes you all to Stark and Anti-Kickback statutes both at the state and federal level. It may make sense to talk by phone to talk through the whole concept.

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