Alleged Kickbacks to Physicians by a Healthcare Company

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After a DOJ investigation, the agency declined to intervene in the case.

A large healthcare company retained Cornerstone Research and Professor Sean Nicholson of Cornell University in a DOJ investigation regarding alleged kickbacks to physicians in the form of a bundled discount.

Professor Nicholson’s analysis showed that the agreement did not violate the Anti-Kickback Statute.

Professor Nicholson conducted a fair market value analysis of the relevant agreement. His analysis showed that the effective price of the unbundled product was consistent with competitive market pricing, and therefore did not violate the Anti-Kickback Statute. The DOJ declined to intervene in the case.


For additional information on this case, contact Maria Salgado.

Case Expert

Sean Nicholson

Professor, Department of Economics,
Professor, Brooks School of Public Policy,
Director, Sloan Program in Health Administration,
Cornell University;
Senior Advisor, Cornerstone Research