§ 68-1-138 — Prohibited offer or payment, or offer or solicitation, of commission for referral of patient or patronage with respect to alcohol or drug services

(a) A healthcare facility or provider licensed under this title, with respect to alcohol and drug services, as defined in § 33-2-402 , shall not knowingly: (1) Offer or pay a commission, benefit, rebate, kickback, or bribe, directly or indirectly, in cash or in kind, or engage in any split-fee arrangement, in any form whatsoever, to induce the referral of a patient or patronage to or from: (A) A licensee or facility licensed under title 33, chapter 2, part 4; or (B) A recovery residence, an employee of a recovery residence, a nationally recognized recovery residence standards organization or its affiliate, or an employee of a nationally recognized recovery residence standards organization or an employee of its affiliate under title 33, chapter 2, part 14; (2) Solicit or receive a commission, benefit, rebate, kickback, or bribe, directly or indirectly, in cash or in kind, or engage in any split-fee arrangement, in any form whatsoever, in return for referring a patient or patronage to or from: (A) A licensee or facility licensed under title 33, chapter 2, part 4; or (B) A recovery residence, an employee of a recovery residence, a nationally recognized recovery residence standards organization or its affiliate, or an employee of a nationally recognized recovery residence standards organization or an employee of its affiliate under title 33, chapter 2, part 14; (3) Solicit or receive a commission, benefit, rebate, kickback, or bribe, directly or indirectly, in cash or in kind, or engage in any split-fee arrangement, in any form whatsoever, in return for the acceptance or acknowledgment of treatment from: (A) A licensee or facility licensed under title 33, chapter 2, part 4; or (B) A recovery residence, an employee of a recovery residence, a nationally recognized recovery residence standards organization or its affiliate, or an employee of a nationally recognized recovery residence standards organization or an employee of its affiliate under title 33, chapter 2, part 14; or (4) Aid, abet, advise, or otherwise participate in the conduct prohibited under subdivision (a)(1), (a)(2), or (a)(3). (b) Any healthcare facility or provider licensed under this title, with respect to alcohol and drug services, that violates this section is subject to suspension or revocation of the healthcare facility's or provider's license by the appropriate licensing board and the imposition of civil penalties as authorized under this title.

Legislative History

Amended by 2021 Tenn. Acts, ch. 309, s 8, eff. 7/1/2022. Acts 2018 , ch. 855, § 3.