Online Marketing
Buyer Beware if You Are Thinking of Becoming a Seller!
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It’s very attractive. Groupon and other collective-buying marketing companies are targeting medical services. But coupon seller beware—you could be setting yourself up for legal trouble according to the American Medical Association.
Groupon and other companies are offering localized ‘deals-of-the-day’ on a wide variety of products and services. Recently, the list of services has been seeing items such as medical and health procedures increase: items such laser hair removal, skin rejuvenation treatments, Lasik surgery, and teeth whitening packages.
So What’s the Deal?
David Harlow, a Massachusetts attorney, said that elective services where patients pay for the service out of their pocket, if done properly, can work. However, physicians could be violating anti-kickback laws and insurance contracts for those services covered by federally funded or traditional insurance.
Typically, the physician splits the revenue (based on the volume of business) with the marketing company, which is not allowed with federal health care programs. And if it’s privately insured, then there are contracts to consider—most have language guaranteeing the insurers they get the best price. This could force the physician to offer all services at the reduced price offered on the site.
If you are considering this route of marketing, do your homework first and ensure you are not costing yourself more money than just the cost of doing business with the marketing company.
Source: Dolan PL. Groupon, similar sites target medical services for deals. American Medical News Web site. http://www.ama-assn.org/amednews/2011/03/07/bica0307.htm. Published March 7, 2011. Accessed, March 7, 2011.
Published on March 8, 2011
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