The page below is a sample from the LabCE course Medicare Compliance for Clinical Laboratories. Access the complete course and earn ASCLS P.A.C.E.-approved continuing education credits by subscribing online.

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It is against the law to offer or ask for money or favors to get a physician to order tests from a laboratory. This is known as an "inducement" or a "kickback."

  • Laboratories should only give supplies to a physician for the drawing, processing, storing, or transporting of specimens to the laboratory.
  • The laboratory cannot provide supplies to physicians for their own use.
  • The laboratory must monitor the amount of supplies provided to ensure that it matches the number of tests sent to the laboratory.
  • The laboratory cannot give free tests except in the event of laboratory error.
  • The laboratory cannot give free education to clients unless it is about the laboratory's services or policies.
  • The laboratory cannot give excessive or expensive gifts or entertainment to physicians.
  • The laboratory can give discounts, but the price must be above cost and at "fair market value."