Health care providers seeking to grow their practice must tread carefully when it comes to marketing arrangements. While increasing patient volume is a common business goal, not all marketing tactics are legally permissible—especially when they involve payment structures tied to patient referrals. Even seemingly harmless agreements, such as paying a company based on the number of patients it delivers, can trigger serious legal and regulatory consequences.
The health care marketing industry often promotes services promising fast and measurable patient growth. These offers can be enticing, especially in competitive markets. However, providers must scrutinize these deals, as some cross legal boundaries. In Texas, the Patient Solicitation Act makes it illegal to offer or receive anything of value in exchange for referring patients. That means performance-based marketing arrangements could be interpreted as unlawful inducements.
Federal law also casts a wide net. The Anti-Kickback Statute prohibits remuneration for referrals involving federally funded programs like Medicare and Medicaid. Violations can lead to significant civil and criminal penalties, including fines, exclusion from federal health care programs, and even imprisonment. Additionally, such conduct may run afoul of the False Claims Act, especially if it results in improperly billed federal claims.
Texas law adds another layer of complexity with its barratry statute, which bans the improper solicitation of professional services—including by health care providers. This statute is often enforced in the context of personal injury and legal services, but its reach can extend to medical marketing tactics that resemble client chasing.
Penalties for violating these laws can be severe. In addition to civil and criminal liability, providers risk disciplinary action from their licensing boards, which may include suspension or revocation of their professional licenses.
To avoid these pitfalls, health care providers should never enter into marketing or referral agreements without first consulting qualified legal counsel. A proactive legal review can help ensure that promotional strategies comply with both state and federal laws, protecting the provider’s reputation, finances, and professional standing. When it comes to patient marketing, compliance must always come before convenience.