Take Care When Paying Volume-Based Compensation to Sales Agents to Avoid Anti-Kickback Statute Violations

By  Frederick R. BallColeen W. Hill and Victoria (Tori) Hawekotte

Pharmaceutical and medical device companies sometimes compensate sales agents per volume sold. The Fifth and Seventh Circuits have indicated that a company may structure such arrangements without running afoul of the Anti-Kickback Statute (AKS). However, such arrangements carry risk of violating the AKS and should be structured with care.

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