Anti-Kickback Statute (42 U.S.C. § 1320a-7b)

We often explain that some of the most damaging healthcare fraud doesn’t come from fake bills—it comes from improper relationships between providers and suppliers. The Anti-Kickback Statute (AKS) directly targets this kind of corruption.

The AKS is a federal law that prohibits offering, paying, soliciting, or receiving anything of value to induce or reward referrals for services covered by federally funded programs like Medicare or Medicaid. In other words, doctors, hospitals, and companies can’t exchange money, gifts, or incentives in return for patient referrals or product use.

Violating the Anti-Kickback Statute can lead to criminal penalties, exclusion from federal healthcare programs, and significant civil fines. Even more importantly, claims that result from kickback arrangements can be considered false claims under the False Claims Act, compounding liability.

There are, however, carefully defined safe harbors that allow certain legitimate business practices, such as properly structured employment contracts or discount arrangements, to proceed without violating the law.

For whistleblowers, recognizing kickback schemes is crucial—they’re among the most common and costly forms of healthcare fraud. The AKS ensures that patient care decisions are based on need and medical judgment, not profit.

At Barrett Johnston, we’ve worked on cases where the Anti-Kickback Statute was instrumental in uncovering multi-million-dollar frauds. It remains one of the most vital safeguards for integrity in healthcare spending.