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Group Coupon and Vouchers

By Adrienne Hersh, JD, ICS Legal Counsel · May 1, 20133 min read
Scissors laying on a pile of coupons
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The Medical Practice Act states that a physician, "may not directly or indirectly divide, share or split a professional fee or other forms of compensation for professional services with anyone in exchange for a referral or otherwise.” 225 ILCS 60/22.2. This provision prohibits a physician from paying any source for referring a patient, or from accepting payment in exchange for referring a patient to another provider.

The Illinois Department of Financial and Professional Regulation (IDFPR), the agency charged with enforcement of the Medical Practice Act, has issued a statement concerning the participation of licensed physicians in voucher advertising companies (group coupon sites). The IDFPR has determined that advertising involving the utilization of prepaid vouchers does not constitute prohibited payment for referral or fee splitting if the following conditions are met: 1) The fee paid by the physician to the website represents reasonable compensation for the cost of the advertising; and 2) The following terms and conditions must be included in a clear and conspicuous manner in all advertisements:

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About the Author

Adrienne serves as Illinois Chiropractic Society general counsel and provides legal advice and support on a wide range of legal issues affecting chiropractic physicians, including licensing and other health care regulations, scope of practice, insurance and reimbursement, business structuring, labor and employment, contracts, and litigation. Adrienne previously served for 8 years as general counsel to the Illinois Department of Professional Regulation (now the Division of Professional Regulation, Department of Financial and Professional Regulation), where she was chief legal counsel responsible for overseeing all legal issues and advising the 50+ licensing and disciplinary boards, including the Medical Disciplinary Board and the Medical Licensing Board. She is a member of the Illinois State Bar Association Health Care Section, the Illinois Association of Healthcare Attorneys, and the National Association of Chiropractic Attorneys.

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