Gross Means Gross for Percentage Fees

“In California, healthcare attorneys must grapple with the state’s broad anti-kickback prohibition, even where its federal counterpart does not apply.1 At issue are permissible compensation arrangements involving healthcare professionals for services other than the referral of patients. Business and Professions Code section 650(b) says:

The payment or receipt of consideration for services other than the referral of patients which is based on a percentage of gross revenue or similar type of contractual arrangement shall not be unlawful if the consideration is commensurate with the value of the services furnished or with the fair rental value of any premises or equipment leased or provided by the recipient to the payer.”

To view the full article as published by California Health Law News, A Publication of the California Society for Healthcare Attorneys Volume XXV, Issue 1, Winter 2023, click here.