Article · Healthcare

The Referral That Became a Felony: How Health Care Fraud Law Actually Works

42 U.S.C. § 1320

Type
Article
Jurisdiction
National
Date
2025-05-26
Topic
Healthcare

Health care is the only industry in which paying someone for referrals is a felony and writing a check to your own imaging center can cost you everything you own. This article explains why, walking through the three statutes that dominate health care compliance — the Anti-Kickback Statute, the Stark Law, and the False Claims Act — and the very different rules each applies. It explains the difference between a statute that requires intent and one that imposes strict liability, why the safe harbors and exceptions are not interchangeable, and how an arrangement that is perfectly legal in every other industry becomes a criminal referral scheme in this one. It covers the sixty-day overpayment rule that turns an ordinary billing error into a false claim, the qui tam mechanism that funds most enforcement, and the self-disclosure protocols that exist precisely because the penalties are otherwise unsurvivable. Readers finish knowing which arrangements to audit first and what to do when a problem is found.

The Referral That Became a Felony: How Health Care Fraud Law Actually Works

Healthcare > Fraud, Abuse, and Compliance | Published 26 May 2025 - Updated 2 May 2026 | UpLaw - uplaw.us

An Industry With Its Own Physics

In most industries, paying a commission for a referral is ordinary business. A real estate agent, a mortgage broker, and a software reseller are all paid for sending business. Nobody goes to prison.

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