What was significant about the US v Greber 1985 decision?

The decision in US v. Greber (1985) established a critical precedent regarding the legality of certain financial arrangements in healthcare. The court ruled that payments made to induce referrals to healthcare services could violate healthcare regulations, specifically the anti-kickback statute, even if legitimate services were rendered. This ruling underscored the idea that the legality of financial arrangements in healthcare is determined not solely by the nature of the services provided but also by the intention behind the payments.

In essence, the ruling clarified that if the primary purpose of a payment is to solicit referrals, it can still be considered illegal, regardless of whether the services that ensued were appropriate or non-deficient in quality. This decision highlighted the significant emphasis federal and state laws place on maintaining ethical relationships between healthcare providers and referral sources, aiming to prevent any conflicts of interest that might arise from monetary incentives.