                                 CODE OF VIRGINIA

SOLICITATION OR RECEIPT OF REMUNERATION FOR CERTAIN SERVICES; OFFER OR PAYMENT
OF REMUNERATION FOR INDUCEMENT OF SUCH SERVICES; PENALTY (§ 32.1-315)

A. A person shall be guilty of a Class 6 felony and, in addition, may be fined
an amount not to exceed $25,000, if he knowingly and willfully solicits or
receives any remuneration, including any kickback, bribe or rebate, directly or
indirectly, overtly or covertly, in cash or in-kind, or causes such remuneration
to be solicited or received:

   1. In return for referring an individual to a person for the furnishing or
   arranging for the furnishing of any item or service for which payment may be
   made in whole or in part under medical assistance; or

   2. In return for purchasing, leasing, ordering, or arranging for or
   recommending purchasing, leasing or ordering any goods, facility, service or
   item for which payment may be made in whole or in part under medical
   assistance.

B. A person shall be guilty of a Class 6 felony and, in addition, may be fined
an amount not to exceed $25,000, if he knowingly and willfully offers or pays
any remuneration, including any kickback, bribe, or rebate, directly or
indirectly, overtly or covertly, in cash or in-kind to any person to induce such
person, or causes such remuneration to be offered or paid:

   1. To refer an individual to a person for the furnishing or arranging for the
   furnishing of any item or service for which payment may be made, in whole or
   in part, under medical assistance; or

   2. To purchase, lease, order, or arrange for or recommend purchasing, leasing
   or ordering any goods, facility, service or item for which payment may be made
   in whole or in part under medical assistance.

C. Subsections A and B shall not apply to:

   1. A discount or other reduction in price obtained by a provider of services
   or other person under medical assistance, if the reduction in price is
   properly disclosed and appropriately reflected in the cost claimed or charges
   made by the provider or other person under medical assistance;

   2. Any reasonable compensation paid by an employer to an employee who has a
   bona fide employment relationship with such employer, for employment in the
   provision of covered items or services;

   3. An agreement by health care providers for the group purchase of equipment,
   goods, services, or supplies which results in fees paid to an agent of the
   providers, when such agreement has been presented to and authorized by the
   Department of Medical Assistance Services on the basis that the agreement will
   reduce the costs of providers of institutional services; and

   4. Any remuneration, payment, business arrangement or payment practice that is
   not prohibited by 42 U.S.C. &#xA7; 1320a-7b (b) or by any regulations adopted
   pursuant thereto.

D. The Director of the Department of Medical Assistance Services may terminate
or deny a contract to a provider for any violation of this section pursuant to
&#xA7; 32.1-325.

HISTORY: 1981, c. 255; 1986, c. 551; 2003, c. 312; 2010, c. 305.