Delaware Anti-Kickback & Referral Laws

Delaware Anti-Kickback Law at a Glance

Delaware's anti-kickback and referral laws focus on preventing improper financial incentives that influence the referral of public-assistance services. These rules shape healthcare arrangements by prohibiting kickbacks that could distort the delivery of care or influence decisions in the public interest. The state's approach to fee-splitting and referral arrangements is particularly strict in contexts involving public-assistance programs, where the risk of exploitation or conflicts of interest is heightened.

State Statutes

Del. Code tit. 31, § 1005(a) prohibits the offering, paying, soliciting, or receiving of any remuneration to induce or reward referrals of items or services payable by a public-assistance program. This includes kickbacks, bribes, or other financial incentives that may influence the referral of services. The statute applies broadly to individuals and entities involved in the provision or referral of such services.

Del. Code tit. 31, § 1005(b) extends liability beyond criminal penalties by imposing civil and licensing consequences for violations. This means that individuals or entities found guilty of violating the statute may face disciplinary actions, including the loss of professional licenses, as well as civil penalties. These provisions ensure that violations have both immediate and long-term repercussions, reinforcing compliance with the law.

Enforcement

Enforcement of Delaware's anti-kickback laws is carried out by various state licensing boards and regulatory agencies, including the Delaware Board of Medical Licensure and Discipline, the Delaware Board of Nursing, and other relevant professional licensing bodies. These agencies are responsible for investigating complaints, conducting disciplinary proceedings, and imposing penalties for violations of the referral and kickback laws.

The Federal Overlay

The federal Anti-Kickback Statute, 42 U.S.C. § 1320a-7b(b), makes it a felony to knowingly and willfully offer, pay, solicit, or receive remuneration to induce or reward referrals of items or services payable by a federal health care program. The Stark Law, 42 U.S.C. § 1395nn, separately prohibits physician self-referrals for designated health services payable by Medicare or Medicaid, on strict-liability terms. Both regimes carry safe harbors and exceptions published at 42 C.F.R. § 1001.952. State referral and fee-splitting statutes operate alongside these federal prohibitions and can apply even where no federal program payment is involved.

Reading the State Desk

Delaware's state laws interact with federal anti-kickback and Stark Law regimes, creating a layered compliance environment. For further analysis, see /practice-areas/ for research topics, /the-anti-kickback-statute-explained-why-referral-payments-trigger-scrutiny/ for an overview of the statute, /safe-harbors-under-the-anti-kickback-statute-and-where-providers-get-tripped-up/ for safe harbor details, /aks-and-stark-law-how-the-two-regimes-overlap-in-healthcare-investigations/ for overlap analysis, /recent-antikickback-statute-decisions/ for recent decisions, and /faq/ for frequently asked questions.