Properly Working with a Manufacturer and Pitfalls to Avoid

Manufacturers and DME suppliers are dependent on each other. It is important to suppliers that manufacturers be able to produce quality products and sell them at a fair price. On the other hand, it is important to manufacturers that suppliers have the ability to purchase and resell the products. It is increasingly common for manufacturers and suppliers to collaborate in order to facilitate the success of both parties. As they work together, manufacturers and DME suppliers need to be careful to avoid violating the federal anti-kickback statute (AKS), beneficiary inducement statute, and related laws. This program will (i) discuss the federal laws that govern manufacturer/DME supplier relationships; (ii) the types of collaboration that are legally acceptable; and (iii) the types of collaboration that cross the line and implicate federal anti-fraud laws. In particular, the program will focus on (i) discounts and rebates in accordance with the discount safe harbor to the AKS; (ii) cooperative marketing arrangements; (iii) sample programs; and (iv) the transmittal of leads from the manufacturer to the supplier.

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