Can I offer a referral program for my customers in Indiana? What are the requirements?

Based on the Indiana Code, there are specific requirements for referral programs in Indiana.

Requirements for Referral Programs in Indiana

Indiana Code 25-14-4-2 states that any person, firm, partnership, association, or corporation that engages in any business or service that includes the referral or recommendation of persons to a dentist for any form of dental care or treatment must disclose to a prospective patient at the time of contact that the licensed dentist has paid a fee for participation in the service.

Indiana Code 25-14-4-3 prohibits dentists from entering into a contract or other form of agreement to accept for dental care or treatment a person referred or recommended for care or treatment by a dental referral service business located in or doing business in another state if the dental referral service business does not meet the requirements of this chapter.

Indiana Code 25-34.1-3-11 allows out-of-state commercial brokers to perform acts with respect to commercial real estate that require a license under this article without a license under this article, provided they meet certain requirements. These requirements include working in cooperation with a broker who holds a valid license issued under this article, entering into a written agreement with the broker that includes the terms of cooperation and compensation, and filing an irrevocable written consent with the commission that legal actions arising out of the conduct of the out-of-state commercial broker or the broker’s agents may be commenced against the out-of-state commercial broker in a court with jurisdiction in a county in Indiana in which the cause of action accrues.

Additionally, Indiana Code 25-1-9.1-11 defines “referral” as a recommendation or direction made by a provider to a covered individual that the covered individual receive a health care item or service rendered by another provider that is not affiliated with the first provider. The term does not include a recommendation or direction made by a provider to a covered individual that the covered individual receive a health care item or service rendered by another provider that is affiliated with or not specifically identified by name by the first provider.

Conclusion

If you are considering offering a referral program for your customers in Indiana, it is recommended that you consult with a legal professional to ensure that your program complies with all applicable laws and regulations.

Jurisdiction

Indiana

• General