4. Personal Services and Management Contracts
Any payment made by a principal to an agent as compensation for the services of the agent, as long as all of the following seven standards are met:
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The agency agreement is set out in writing and signed by the parties.
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The agency agreement covers all of the services the agent provides to the principal for the term of the agreement and specifies the services to be provided by the agent.
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If the agency agreement is intended to provide for the services of the agent on a periodic, sporadic or part-time basis, rather than on a full-time basis for the term of the agreement, the agreement specifies exactly the schedule of such intervals, their precise length, and the exact charge for such intervals.
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The term of the agreement is for not less than one year.
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The aggregate compensation paid to the agent over the term of the agreement is set in advance, is consistent with fair market value in arms-length transactions and is not determined in a manner that takes into account the volume or value of any referrals or business otherwise generated between the parties.
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The services performed under the agreement do not involve the counseling or promotion of a business arrangement or other activity that violates any State or Federal law.
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The aggregate services contracted for do not exceed those which are reasonably necessary to accomplish the commercially reasonable business purpose of the services.
Anti-Kickback Safe Harbor
Sources: 42 C.F.R. § 1001.952(d)