Fast Break: Fourth Circuit AKS Case Enforcement Analysis

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Thursday, July 22, 2021
03:00 PM - 03:45 PM Eastern Daylight Time
02:00 PM - 02:45 PM Central Daylight Time
12:00 PM - 12:45 PM Pacific Daylight Time

In this month's installment of Fast Break, partners Katie McDermott and Howard Young will analyze the US Court of Appeals for the Fourth Circuit's recently affirmed $114 million judgment in United States v. Mallory, a protracted suit filed under the qui tam provisions of the False Claims Act (FCA) against the owner of a specialty clinical laboratory and the individuals who led its sales operation.

The Mallory decision may be a jolt for the healthcare industry for its surprising holding that commission-based payments to independent sales contractors violate the Anti-Kickback Statute (AKS). These arrangements have not been protected under the AKS but are not presumptively per se illegal. Where is the new line, especially given the 2020 AKS changes to the personal services safe harbor?

Join us as we discuss industry lessons for independent sales agent relationships in light of this Fourth Circuit opinion.

Don't forget you can view any of our previous webinars on our Fast Break series page >>