Marketing your home care agency matters, especially as competition grows across Indiana. But if your agency accepts Medicare, Medicaid, or Medicaid Waiver payments, you must follow strict rules when marketing your home care business.
What works in other industries can quickly become illegal in healthcare. Here’s what every Indiana home care provider should know to help protect themselves when marketing their agency.
Key Federal Laws That Affect Home Care Marketing
1. Anti-Kickback Statute (AKS)
The Anti-Kickback Statute makes it illegal to offer, give, or receive anything of value to get or reward patient referrals for federally funded healthcare services.
Violating this law can lead to felony charges, fines up to $100,000, and even 10 years in prison.
Things to Avoid:
- Paying patients, families, or referral partners for sending clients your way
- Offering discounts, gifts, or free services in exchange for referrals
- Hiding referral payments behind “consulting” or “bonus” contracts
Even if influencing referrals is only one reason behind a payment, it still violates the AKS.
2. Stark Law (Physician Self-Referral Law)
The Stark Law prohibits doctors from referring patients for home health or other designated services to a business with which they have a financial relationship.
The law applies even if the referral wasn’t intentional. To stay compliant, make sure every referral arrangement fits within a specific legal exception.
3. Civil Monetary Penalties (CMP) Statute
The CMP Statute allows the government to fine providers that break AKS, Stark, or similar laws.
It also prohibits giving gifts or other rewards to patients. According to the Office of Inspector General (OIG), “nominal value” gifts cannot exceed $15 per item or $75 per person per year.
4. False Claims Act (FCA)
The False Claims Act serves as the government’s main tool to fight healthcare fraud.
Submitting claims tied to illegal referrals counts as submitting false claims. Violators face large fines, repayment demands, and potential whistleblower lawsuits.
Common Marketing Mistakes to Avoid
Even small gestures meant as goodwill can lead to trouble. The OIG looks at both the real and perceived value of what you offer, meaning even something inexpensive can still create risk.
Direct Payments (Always Illegal)
- Paying cash to patients or families who choose your agency
- Offering “utility” or “stipend” payments
- Advertising cash referral offers on social media
- Giving bonuses to staff or partners for new patient referrals
- Using fake contracts to cover up referral payments
Indirect or Non-Cash Offers (Still Risky)
- Promising extra service hours not approved by payors
- Leaving medical equipment behind after discharge
- Bringing food or gifts to referral partners
- Hosting free health fairs that offer more than minimal-value services
- Handing out free gift cards, supplies, or phones
- Offering free pre-referral assessments
Even if these actions seem harmless, they can still appear as attempts to buy referrals, and that can lead to fines, exclusion from federal programs, or even loss of your license.
How to Market Your Home Care Agency Safely
You can market your agency successfully and stay within the law. These five steps help keep your marketing efforts safe and compliant:
- Train Your Team: Teach your staff about fraud and abuse laws. Encourage them to report questionable behavior immediately.
- Set Clear Policies: Enforce a zero-tolerance rule for referral-based payments or gifts. Make sure everyone understands the consequences.
- Get Legal Guidance: Some arrangements may qualify under a “safe harbor” rule. Always check with a healthcare attorney before you move forward.
- Track Your Spending: Keep detailed records of all marketing costs and verify that you stay within OIG value limits.
- Review Everything First: Run all campaigns, promotions, and outreach through compliance review before launch.
The Takeaway: Play It Safe and Build Trust
Trying to “buy” referrals might bring quick results, but it can destroy your business in the long run. Breaking these laws can lead to fines, criminal charges, and even loss of your license.
Instead, focus on building strong relationships, offering excellent care, and earning referrals through quality service.
Disclaimer: This article shares general information for educational purposes only. It does not provide legal advice. Always speak with a qualified attorney or compliance expert before making any marketing or regulatory decisions for your home care business.
