Can a Brightstar Care agency provide staff to other facilities that participate in Medicare programs?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
pendent upon, the income or receipts of the licensed professional.
- iii. Other states only prohibit fee splitting arrangements that are based on referrals.
- iv. Penalties for violating these fee-splitting statutes or regulations may include revocation, suspension or probation of a health care professional's license, or other disciplinary action, as well as monetary penalties. Alleged violations of the fee-splitting laws have also been used successfully by health care professionals to declare a contract to be void as against public policy.
e. Other Federal Regulations
For providers participating in Medicare or Medicaid, there are comprehensive requirements related to such participation in addition to those found in their provider agreement. There
are a number of federal laws prohibiting certain activities and arrangements relating to services or items which are reimbursable by Medicare or Medicaid. Even though your Agency is prohibited by its Franchise Agreement from participating in Medicare, it may from time to time provide staff to other facilities, including those that participate in the Medicare and/or Medicaid programs.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 80–81)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, while a Brightstar Care agency is prohibited from directly participating in Medicare, it may provide staff to facilities that do participate in Medicare and/or Medicaid programs. This is a notable allowance, as it opens up a potential revenue stream for franchisees by offering staffing services to a broader range of healthcare providers. However, it also introduces compliance considerations.
Even though the Brightstar Care agency itself does not participate in Medicare, the facilities it staffs may be subject to Medicare laws. These laws include prohibitions against employing providers excluded from Medicare or Medicaid. Therefore, it is the franchisee's responsibility to determine whether their agency's employees need to be screened for excluded status in these programs to ensure compliance by the facilities they staff.
This requirement places an onus on Brightstar Care franchisees to conduct due diligence and potentially implement screening processes for their staff. Failure to do so could expose the facilities they serve to legal repercussions, which could, in turn, negatively impact the franchisee's business relationships and reputation. Brightstar Care franchisees should consult with legal counsel to understand their obligations and implement appropriate compliance measures.