If a healthcare provider is using any kind of compensation to coax a patient to use their medical practice, or to persuade another medical provider to refer patients to that practice or medical facility, that is a kickback.
A kickback can be in many forms. For example, cash in any form including meals, travel, vacations, and payments for services that the physician, chiropractor, or other health care provider did not actually perform.
Also, there are certain cases where the basis for prosecution concerned payments that had been above market value for services rendered or that were not necessary.
In addition, if a medical group or hospital provides free or reduced rent to a doctor or medical specialist who agrees to refer patients to that hospital, that’s a kickback.
When a DME or pharmaceutical company gives money or gifts to a physician on the understanding that the physician will refer patients to those manufacturers’ products, that’s a kickback. This applies even if the physician would have otherwise legally ordered the DME or prescribed the medication — because at least one purpose of the illegal payment plan was to induce referrals. (Courts use what’s called the “One Purpose Test” in determining this.)