In today’s complex healthcare landscape, navigating compliance isn’t just about following the rules—it’s about protecting the foundation of your practice. One area that often raises questions for physicians and healthcare business owners in New Jersey is the state’s stance on anti-kickback laws. While many are familiar with the federal Anti-Kickback Statute (AKS), New Jersey has its own laws that differ in critical ways. These distinctions can catch providers off guard, especially when structuring business relationships or entering into compensation arrangements. That’s why it’s essential to understand not just the federal framework, but the state-specific rules that could impact your operations—and potentially your license.

At our firm, we work closely with physicians, group practices, and healthcare entrepreneurs to help them avoid legal pitfalls while building thriving, compliant businesses. One of the biggest misconceptions we encounter is the assumption that complying with federal anti-kickback laws automatically means you’re in the clear. Unfortunately, that’s not always the case in New Jersey. The state’s anti-kickback laws are broader in scope and, in some instances, stricter than their federal counterparts.

Under the federal AKS, the focus is on preventing remuneration—anything of value—that is knowingly and willfully offered, paid, solicited, or received to induce or reward referrals for items or services reimbursable under federal healthcare programs like Medicare or Medicaid. There’s a clear intent requirement, and numerous safe harbors exist to shield legitimate business arrangements. But New Jersey’s law, known under the New Jersey Code of Criminal Justice (N.J.S.A. 2C:21-22.1), casts a wider net. It applies not only to services reimbursable by government programs but also to private payers, and it doesn’t always require proof of intent in the same way federal law does.

This means that arrangements that might be structured to fall under a federal safe harbor could still raise red flags at the state level. For example, offering or accepting fees, bonuses, or other incentives in exchange for patient referrals—whether the patients are covered under private insurance or government programs—can trigger scrutiny under New Jersey law. Even seemingly innocuous marketing relationships, shared space arrangements, or profit-sharing models can present legal risks if not carefully vetted.

What further complicates things is the potential for dual exposure. A provider could face both federal and state enforcement actions stemming from the same conduct. And in New Jersey, the penalties are serious. Violations can result in criminal charges, fines, and even imprisonment, not to mention reputational damage and potential licensing consequences. For healthcare professionals who have invested years into their education, training, and practices, the stakes couldn’t be higher.

This is where we come in. Our role is to help our clients anticipate these issues before they become problems. Whether you’re entering into a joint venture, negotiating a management agreement, or exploring a new referral relationship, we help you assess the legal risks and structure your arrangements to comply with both federal and New Jersey-specific regulations. We understand that healthcare is both a calling and a business. Our goal is to safeguard your practice so you can focus on delivering care, not dealing with legal fallout.

We encourage any physician or healthcare provider doing business in New Jersey to take a proactive approach. If you’re unsure whether your current relationships or compensation models could raise compliance issues, don’t wait for an audit or investigation to find out. Let’s talk through your structure, identify any risks, and create a strategy to protect your interests.