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

Referral Program Requirements in Massachusetts

To offer a referral program for your customers in Massachusetts, you must comply with the state’s laws and regulations. Here are some requirements to consider:

  1. Compliance with Anti-Kickback Statute: The referral program must comply with the federal Anti-Kickback Statute, which prohibits offering or receiving anything of value in exchange for referrals for healthcare services paid for by federal healthcare programs. [3.1]
  2. Compliance with State Laws: Massachusetts has strict laws regarding referral fees and kickbacks. It is illegal to pay or receive any fee or compensation for referring a patient to a healthcare provider or facility. [3.1]
  3. Written Agreement: The referral program must have a written agreement that outlines the terms and conditions of the program, including the referral fee or compensation, the services to be provided, and the duration of the agreement. [3.1]
  4. Disclosure: The referral program must disclose to the patient that a referral fee or compensation is being paid to the referring party. [3.1]
  5. Licensing: If the referral program involves healthcare services, the healthcare provider or facility must be licensed by the state of Massachusetts. [3.1]
  6. Non-Discriminatory: The referral program must be non-discriminatory and open to all customers who meet the program’s requirements. [3.1]

It is recommended that you consult with a legal professional to ensure that your referral program complies with all applicable laws and regulations in Massachusetts.

Outsourcing Facility Registration Requirements

If your referral program involves healthcare services, the healthcare provider or facility must be licensed by the state of Massachusetts [3.1]. Outsourcing facilities located in Massachusetts must register with the Board of Registration in Pharmacy [2.1]. The registration application must include a complete application for a Massachusetts controlled substance registration, proof of a valid, current registration with the FDA pursuant to section 503B of the Federal Food, Drug, and Cosmetic Act, and proof of an inspection by the FDA in connection with the section 503B of the Federal Food, Drug, and Cosmetic Act registration within the two years immediately preceding the application [2.1].

Conclusion

To offer a referral program for your customers in Massachusetts, you must comply with the state’s laws and regulations, including the Anti-Kickback Statute and state laws regarding referral fees and kickbacks. You must have a written agreement, disclose the referral fee or compensation, and ensure that the program is non-discriminatory and open to all customers who meet the program’s requirements. If your referral program involves healthcare services, the healthcare provider or facility must be licensed by the state of Massachusetts and registered with the Board of Registration in Pharmacy. It is recommended that you consult with a legal professional to ensure compliance. [3.1][2.1]

Source(s):
Jurisdiction

Massachusetts