Does the Brightstar Care franchise prohibit compensation arrangements where payment for space, facilities, equipment, or personnel services is based on a percentage of a licensed professional's income?
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. While Medicare laws may not apply to your Agency, these laws may apply to those facilities, including laws prohibiting Medicare- or Medicaid-participating facilities from employing providers excluded from those programs.
Source: Item 23 — RECEIPTS (FDD pages 118–387)
What This Means (2025 FDD)
Based on the 2025 Brightstar Care Franchise Disclosure Document, the document does not explicitly state whether compensation arrangements based on a percentage of a licensed professional's income are prohibited. However, it does mention that 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 Brightstar Care agencies are prohibited from participating in Medicare, they may provide staff to other facilities that do participate in Medicare and/or Medicaid programs. Therefore, while Medicare laws may not apply directly to the Brightstar Care agency, these laws may apply to the facilities they staff, including laws prohibiting Medicare- or Medicaid-participating facilities from employing providers excluded from those programs. If a practitioner is excluded from Medicare or Medicaid, they will be prohibited from receiving payment from that facility.
The FDD states that it is the franchisee's responsibility to determine whether and to what extent employees of their agency need to be screened for their possible excluded status in these or other payment programs. The document also advises franchisees to consult with competent legal counsel regarding the existence and applicability of these laws, especially if they are in a position to refer patients to their own agency.
Given the lack of explicit prohibition and the emphasis on compliance with federal regulations, prospective Brightstar Care franchisees should seek clarification from the franchisor and legal counsel regarding the legality and permissibility of compensation arrangements based on a percentage of a licensed professional's income, ensuring full compliance with all applicable laws and regulations.