Health Law Practice Chair and Health Care Enforcement Defense Co-chair Karen Lovitch was quoted in a recent The Dark Report article on a recent court ruling interpreting the Eliminating Kickbacks in Recovery Act of 2018 (EKRA) and its implications for clinical labs that use independent contractors for marketing. The court decided that while paying independent sales and marketing representatives on a percentage basis is not by itself an EKRA violation, compensation arrangements could still cross the line if marketers exert “undue influence” on physicians.

“Even ethical labs could still run into risks with percentage-based compensation for contracted marketers,” Karen says, “We’ve had one court give us a decision that appears to be helpful in the context of contracted marketing rep compensation. But we still don’t have anything coming out of the Department of Justice (DOJ) otherwise in terms of regulations or guidance, and that’s not uncommon.”
 

Source

The Dark Report